GMI Research projected that the managed services market is growing day by day due to the increasing adoption and advancements in cloud technologies like big data and the upgradation of existing technologies. The shortage of skilled professionals and decreased IT budget of organizations further fuel the market growth.
Introduction of the Global Managed Services Market
Managed Service is a practice of outsourcing regular technology management responsibilities to third-party organizations by companies to enhance their operation and reduce expenses. The company outsourcing responsibility to the third party includes network support, server support, database support, lifecycle build or maintenance activities, production support, and other activities. Managed services provider (MSP) or third-party organization provides performance monitoring, maintenance, and 24×7 support.
Key players of the Market
Managed Service Market Dynamics
The significant factors fueling the growth of the Global Managed Services market include the increasing lack of skilled IT professionals, cost reduction, and reduced IT budgets of the organization, which promotes them to leverage managed services. As per the managed services market analysis, the increasing adoption, and developments in cloud technologies like big data, and the upgradation of existing technologies, are further propelling the demand for managed services. Small and Medium-sized Enterprises are extensively incorporating cloud technology, which augments the demand for managed services among SMEs. Managed services enable organizations to run their business process and operations smoothly without compromising quality and efficiency. Cloud service providers and managed service providers are accelerating the demand for outsourcing management functions, generating numerous opportunities in the market. Moreover, the organization concentrates on expanding profit margins and fulfilling the demand of changing business operations, facilitating them to prefer managed services. On the other hand, the factor that hampers the managed services market size is the rising pressure from statutory regulations worldwide.
Managed Service Market Segmentation
Service Type Market Drivers
Based on the Service Type, the Managed data center and IT infrastructure services segment are projected to grow faster CAGR during the forecast period due to the shortage of IT professionals in organizations. Managing IT environments is the challenge faced by most CIOs. The managed services provider enables the organization to run its operations efficiently by offering low-cost solutions with security.
Organization Size Market Drivers
Based on Organization Size, the Large Enterprises segment is expected to dominate the market during the forecast period. It is due to the growing acceptance of managed services among large enterprises compared to small and medium enterprises. Manage Services enhance productivity and enable the organization to minimize overhead costs. Moreover, the rising data loss of the companies and the high downtime cost will further facilitate them to choose managed services over the forecast period.
Deployment Type Market Drivers
Based on the deployment type, the on-premises segment is expected to dominate the market during the forecast period owing to the growing adoption of managed services among organizations due to the rising concerns related to data security. The managed service provider delivers services to the client’s premises.
Vertical Market Drivers
Based on the Vertical, the BFSI segment is projected to hold the maximum managed services market share during the forecast period. It is due to the increasing acceptance of managed services in the BFSI sector due to the rising need for managed services to manage and maintain data from trading instruments and to keep a record, calculations, and reporting. MSP provides several valuable services for ultra-low latency trading, hosting, market data, and other related services.
Based on the region, North America envisages leading in the global Managed Service market during the forecast period due to the growing acceptance of managed services to enhance profit margin in the region.
Managed Service Market Segmentation
Market Segmentation by Service Type
Market Segmentation by Organization Size
Market Segmentation by Vertical
Market Segmentation by Region
Introduction of GMI Research
GMI Research is a market research and consulting firm that provides market insights and intelligence across 12 major sectors, helping our clients make effective investment and business decisions.