The managed services market is expected to register sizable growth over the coming years credited to the rising emphasis of enterprises on outsourcing cybersecurity, network maintenance and network monitoring services. The pressing need to effectively manage business infrastructure and improve overall business efficiencies is likely to boost industry size.
Managed services help companies to shift their business operations and processes to partner companies, in order to enhance business efficiency and operational quality. Enterprises are shifting towards modern infrastructure to allow the processing of critical work processes. Managed service providers are emphasizing monitoring and managing infrastructural changes through the adoption of IoT devices, cloud and big data analytics.
Firms operating in the managed services market are developing innovative services for monitoring and security. For example, in 2020, key market player, Tech Mahindra announced the launch of iCOPS, an intelligent cloud operations and subscription management platform for global enterprises.
Based on such innovations, Global Market Insights, Inc., estimates that the managed services market may record over USD 350 billion by 2026. This growth can also be attributed to robust service adoption in Europe owing to rising cyber-attacks and extensive digitization.
The wide presence of managed service vendors and the adoption of cloud infrastructure is projected to make North America a major regional market.
Ongoing trends influencing managed services market expansion include:
- Robust demand for managed backup and recovery services – The managed backup and recovery service segment is anticipated to rise noticeably over the coming years owing to increasing demand in well-established enterprises. Enterprises are adopting additional tools and services for safeguarding businesses, driven by the growing evolution and technological development. Managed backup and recovery services enable businesses to ensure hassle-free operations and analyze the whole business environment.
- Increasing adoption in large enterprises – As a result of the COVID-19 pandemic, large enterprises have instructed their employees to work from home. Generally, IT teams maintain and monitor the entire infrastructure and make the needed changes as per business requirements. However, given the pandemic, large enterprises are using diverse managed services. In 2019, the large enterprise segment accounted for the highest market share.
- Rising application in energy and utility sectors – Business efficiency and additional flexibility are driving demand for managed services across energy and utility enterprises. The utility sector is experiencing more vulnerabilities which is affecting infrastructure processes and control systems, which is leading to significant adoption of managed network, security and infrastructure services by enterprises to keep their focus on core business operations. The wide application of smart grid technology solutions and IoT devices could further fuel industry outlook.
Vikram Singh Mehta of Global Market Insights contributed this article. Find him on LinkedIn.
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