Global Managed Services Market to Grow Exponentially by 2027 Owing to Company Collaborations & Technological Advancements

Managed services, also known as cloud managed services (CMS) help enterprises in enhancement of IT infrastructure that is needed to be managed with the collaboration of third party and through cloud platforms. These services allow organizations to concentrate on their core business strategies and activities and helps in improving efficiency of a company by offering them competencies in which the company lacks or in replacing the functions that earns higher cost to company.

Various managed services offered by the managed service providers (MSPs) include maintenance and support services, remediation services, security services, monitoring services, network management, server management, database management, disaster recovery, managed storage, managed contact center services, web hosting, application hosting, enterprise mobility management, and others.

COVID-19 Impact on the Industry

The global economy has been disturbed by the outbreak of COVID-19 pandemic. However, the rising adoption of cloud applications, security solutions, artificial intelligence (AI), and big data is predicted to witness a surge in the growth of global managed services market. A number of organizations across the globe are focusing more on work from home to avert the spread of the deadly virus. In addition, the key players of the industry are expanding their business and getting into partnerships to sustain in the pandemic situation. For instance, in March 2020, Oman-based largest telecom operator, Oman expanded its managed services partnership with Ericsson. This partnership includes the deployment of Network Functions Virtualization (NFVI) and automation platforms that allow Omantel to enhance customer experience and increase operational network proficiency.

Key Developments in the Global Industry

Technological advancements are predicted to play a crucial role and are creating lucrative opportunities in the global managed services market. The major industry players are adopting several strategies such as mergers, acquisitions, partnerships, and geographical expansion to obtain a robust position in the overall market, which is subsequently estimated to bolster the growth of the global market.

For instance, in February 2019, a Russian company PJSC VimpelCom and Amdocs Limited entered into a partnership and announced a novel digital IT modernization project. The new IT-solution will upgrade PJSC VimpelCom Digital Business Systems and its neighboring environment. The upgraded technology will offer a more personalized experience to its customers, from self-care management of accounts to totally new bundles for telco as well as non-telco products.

In July 2019, Accenture Plc. completed the acquisition a technology consultancy, BCT Solutions, to strengthen the defense, public safety services, and national security in New Zealand and Australia.

In January 2020, HP launched a novel range of cloud services for hospitality operators and retailers. HP “Engage Catalog” and “Engage Console” are developed to deliver flexible and easy retail solutions, to help retail and hospitality industries to enhance productivity by minimizing manual IT work.

In March 2020, Infosys entered into a collaboration with IBM to help business enterprises speed up their digital transformation activity by using the IBM cloud services. This partnership may help the enterprises transition, transform, and modernize their applications and workflows with IBM cloud services.

Forecast Analysis of the Managed Services Market

Global managed services market is projected to experience a noteworthy growth over the forecast period mainly because managed services help in managing business processes and operations form anywhere all over the world. As managed services are outsourced by a third party, they require minimal cost which is predicted to play an important role in creating massive growth opportunities in the global market. However, the dearth of skilled labor in managed services is likely to hamper the market growth in the coming future.

The growing adoption of cloud technology by various organizations across the globe is a major factor estimated to propel the growth of the global managed services market by 2027. Research Dive in its published report predicts that the global managed services market will grow at a CAGR of 11.1% during the forecast period. The North America market for managed services is projected to witness a significant growth throughout the forecast period owing to the presence of large number of companies in the region. The report further outlines major players functioning in the global industry that are adopting on several strategies to increase their market position. Some of these players include HCL Technologies, IBM Corporation, TCS, AT&T, Atos, Cisco Systems, Ericsson, Fujitsu, Dimension Data and Accenture.