Managed Services Global Market Report 2022

Major players in the managed services market are IBM, Fujitsu Global, Accenture, Atos SE, Cisco, DXC Technology Company, Tata Consultancy Services Limited, Rackspace Technology, AT&T, Verizon, Dimension Data, Infosys, HCL Technologies, Ericsson, GTT Communications, NTT Data Inc., Happiest Minds, Huawei Technologies Co. Ltd., Nokia, CenturyLink, Wipro Limited, Cognizant, Capgemini, Business Technology Partners LLP, Deloitte AG, Secureworks Inc., Alert Logic, BAE Systems, and Microland, Intact Technology.

The global managed services market is expected to grow from $235.7 billion in 2021 to $266.97 billion in 2022 at a compound annual growth rate (CAGR) of 13.3%. The market is expected to grow to $418.64 billion in 2026 at a compound annual growth rate (CAGR) of 11.9%.

The managed services market consists of sales of managed services by entities (organizations, sole traders, and partnerships) that allow the end-users to focus on using a service rather than setting up the service.Managed services are provided by managed service providers that assist businesses in IT infrastructure and tasks, communication and collaboration, regular maintenance, management, and support of IT functions and processes on regular basis.

Managed services are cost-effective, provide more capability to company end-users, allow teams to focus on business core competencies, and allow in-house IT to focus on more strategic IT programs.

The main types of services in managed services are managed security services, managed network services, managed data center and IT infrastructure services, managed communication, and collaboration services, managed mobility services, managed information services, and others.Managed security services are used to provide maintenance, audits, and security governance to enterprises.

The different deployment modes include cloud, on-premises, and involve various organization sizes such as large enterprises, small and medium-sized enterprises (SMEs). It is implemented in several sectors including BFSI, IT and telecom, retail and consumer goods, manufacturing, government, healthcare and life sciences, energy and utilities, and media and entertainment, among others.

North America was the largest region in the managed services market in 2021.Asia Pacific is expected to be the fastest-growing region in the forecast period.

The regions covered in this report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa.

The rise in demand for secure IT infrastructure is contributing to the growth of the managed services market.IT infrastructure refers to the collection of components required for the management and operation of information technology businesses.

A managed service provider (MSP) provides network, application, infrastructure, and security services to clients through continuous and frequent support and active management on their facilities, in their MSP’s data center (hosting), or a third-party data center.IT firms are making many organizational changes to safeguard their IT technology assets, save money, and implement next-generation infrastructure technology and hybrid-cloud models.

Key players in the market are focusing to launch solutions for securing IT infrastructure. For instance, in April 2020, Accurics, Inc., a US-based cloud infrastructure security company had launched a cloud infrastructure security ubiquitous that delivers and manages complexity, consistency, and drift. Therefore, the rise in demand for secure IT infrastructure is driving the managed services market.

The integration of the latest technologies in existing and new business infrastructures has emerged as a key trend in the managed services market.Major companies operating in the managed services sector are focused on integrating new technologies in their businesses to strengthen their position.

For instance, in October 2021, Zylo, a US-based SaaS management platform launched Zylo Managed Services.With Zylo Managed Services, businesses can hire skilled consultants to set up best-in-class SaaS management processes rapidly, freeing up IT and procurement employees.

Zylo offers two Managed Services packages including Zylo SaaS Manager and Zylo SaaS Negotiator.Zylo SaaS Manager offers skilled SaaS management consultants to aid organizations to establish and manage internal business systems and procedures of record for their SaaS products.

Zylo SaaS Negotiator offers a skilled SaaS Negotiator to handle all aspects of the SaaS contract and commercial discussions.

In January 2021, IBM, a US-based computer hardware company acquired Taos Mountain Inc. for an undisclosed amount. Through this acquisition, IBM intends to enter into the cloud professional services market and expand its position in North America. Taos Mountain Inc. is a US-based company that provides cloud-managed services.

The countries covered in the managed services market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, and USA.