Global Managed Services Market (2020-2025) by Type, Organization Size, Deployment, Vertical, Geography, Competitive Analysis and the Impact of Covid-19 with Ansoff Analysis

Introduction

The Global Managed Services Market is estimated to be USD 190 Mn in 2020 and is expected to reach USD 320.2 Mn by 2025, growing at a CAGR of 11%.



Key factors such as rising security concerns and increasing regulatory compliance have led to a rise in dependence on managed services. With fewer skilled employees, tight budgets have led to a need to reduce the total cost of ownership on IT services. This has led to the adoption of different types of managed services models as per business demands to control cost, provide security, and bring efficiency in business operations. These factors are promoting the growth of the market for managed services.

However, the lack of skilled IT professionals with a lack of needed expertise in advanced technologies such as cloud-based technology followed by the initial investments required in adopting these services is likely to hamper the growth of the market.

Market Dynamics

Drivers

• Rising Security Concerns
• Increasing Need for Regulatory Compliance across Different Regions
• Need to Minimize The Overall Cost of Ownership by Lowering Administration And Maintenance Costs
• Increasing Dependence on IT Operations and New Applications to Improve Business Productivity

Restraints

• Lack of Skilled IT Professionals
• High Initial Investment

Opportunities

• High Cloud Adoption and Increasing Automation in IT Environments
• Increasing Demand for Managed Services Among Small and Medium-Sized Enterprises
• Growing Adoption of Advanced Analytics and IoT Solutions

Challenges

• Cybersecurity Issues
• Migration from Existing IT Infrastructure to Cloud

Segments Covered
By Type, the Managed Data Centres holds the largest market share. Due to the high importance laid by the enterprises to invest in managed services for data centres, it helps maintain data backups and access information conveniently from more than a single location. Further, the challenges of low skilled professionals can also be mitigated by implementing such solutions. This can ultimately result in cost control in light of tight budgets and can assure an organization with the needed security.

By Organization Size, the Large Organizations holds the highest market share. Amidst the growing threats posed by cybersecurity, one of the major issues faced by large organizations is the high volume of data loss. This can impact organizations economically. Further, the growth in the demand for managed services is increasing due to the lack of skilled IT professionals and the high cost of downtime. Therefore these enterprises are adopting managed services as an effective solution. Also, the significant number of large enterprises in a given region is contributing to the segmental growth.

By Deployment, the On-premise segment holds the highest market share. Managed services are being adopted by enterprises to majorly secure data losses. Since many such enterprises have legacy systems in place, the Managed Service Providers (MSPs) offer the solution at the clients’ premise. This method permits not only large scale customization but also offers infrastructural flexibility. This results in bringing cost-efficiency in terms of the total cost of ownership and effective control over data operations. This has led to high demand for the on-premise segment.

By Vertical, the Banking, Financial Services and Insurance (BFSI) segment is likely to hold the highest market share. BFSI enterprises require a complex IT infrastructure for managing data for different purposes such as record keeping, reporting, etc., and data encryption and security. Being a regulated sector, they need to adhere to various compliance. Therefore BFSI enterprises require MSPs for hosting and providing Backup and Disaster Recovery (BDR) solutions for mitigating downtime and protecting the sensitive information of clients.

By Geography, North America is anticipated to lead the market. The factors attributing to the growth is majorly due to the technological advancements and the acceptance of emerging technologies. Besides, a strong presence of MSPs such as Cisco Systems, Inc., IBM Corporation, and DXC Technologies in the region is likely to support the growth in the region.

The Global Managed Services Market is segmented further based on Type, Organization Size, Deployment, Vertical, and Geography.

Global Managed Services Market, By Type

• Introduction
• Managed Data Centre
• Managed Security
• Managed Communications
• Managed Network
• Managed Infrastructure
• Managed Mobility
• Managed Backup and Recovery
• Managed Information
• Business Process Outsourcing (BPO)
• Business Support Systems
• Project & Portfolio Management
• Others

Global Managed Services Market, By Organization Size

• Introduction
• Large Enterprises
• Small and Medium-Sized Enterprises

Global Managed Services Market, By Deployment

• Introduction
• On-Premises
• Cloud-Based

Global Managed Services Market, By Vertical

• Introduction
• Telecom
• Information Technology (IT)
• Banking, Financial Services and Insurance (BFSI)
• Consumer Goods and Retail
• Manufacturing
• Healthcare and Life Sciences
• Education
• Energy and Utilities
• Media and Entertainment
• Others (transportation and Hospitality)

Global Managed Services Market, By Geography

• Introduction
• North America
• South America
• Europe
• Asia Pacific
• Rest of the World

Company Profiles
Some of the companies covered in this report are AT&T Inc., Atos SE, Cisco Systems, Inc., Cloudreach, Cognizant, Deloitte Touche Tomatsu Limited, DXC Technology, Fujitsu Limited, HCL Corporation, IBM Corporation, Infosys Limited, NTT Data, etc.

Competitive Quadrant
The report includes Competitive Quadrant, a proprietary tool to analyze and evaluate the position of companies based on their Industry Position score and Market Performance score. The tool uses various factors for categorizing the players into four categories. Some of these factors considered for analysis are financial performance over the last 3 years, growth strategies, innovation score, new product launches, investments, growth in market share, etc.

Lions: Represents companies with a strong foothold in the market, with the highest market share, large investments in technologies, new products.
Bulls: Companies that are medium in size competing with their USPs, growing companies with proven market share.
Rabbits: Small companies but growing rapidly, constantly improving their offerings in the market.
Tortoise: Companies that are slow in growth, having a long legacy, and stable or negative in performance.

Why buy this report?

• The report offers a comprehensive evaluation of the Global Managed Services Market.
• The report includes in-depth qualitative analysis, verifiable data from authentic sources, and projections about market size. The projections are calculated using proven research methodologies.
• The report has been compiled through extensive primary and secondary research. The primary research is done through interviews, surveys, and observation of renowned personnel in the industry.
• The report includes in-depth market analysis using Porter’s 5 force model and the Ansoff Matrix. The impact of Covid-19 on the market is also featured in the report.
• The report also contains a competitive analysis using Positioning Quadrants, a Proprietary competitive positioning tool.

Report Highlights:

• A complete analysis of the market including parent industry
• Important market dynamics and trends
• Market segmentation
• Historical, current, and projected size of the market based on value and volume
• Market shares and strategies of key players
• Recommendations to companies for strengthening their foothold in the market