Managed Service is a process of outsourcing day-to-day technology management responsibilities by companies to third-party organizations for enhancing their operation and to cut down their expenses. The outsourcing responsibility includes a database support, server support, network support, production support, lifecycle build, or maintenance activities and other activities. Managed services provider (MSP) or third-party organization provides 24×7 support, performance monitoring, and maintenance.
The major factors which are driving the growth of the Global Managed Service market includes the rising shortage of skilled IT professionals, cost reduction and decreased IT budgets of the organization, which encourages them to leverage managed services. The growing adoption and advancement in cloud technologies such as big data, as well as the upgradation of existing technologies, are further fuelling the demand for managed services. Small and Medium-sized Enterprises are widely adopting cloud technology which increases the demand for managed service among SMEs. Managed services help the organization to run the business process, and the operation runs smoothly without compromising efficiency and quality. Cloud service providers and managed service providers are raising the demand for outsourcing management functions which will create numerous opportunities in the market. Moreover, the organization is focussing on increasing profit margin, and meeting the demand of changing business operations, thereby encouraging them to opt for managed services. However, rising pressure from statutory regulations across the world may hamper the growth of the market.
Based on the Service Type, the Managed data center and IT infrastructure services segment are expected to grow at a higher CAGR during the forecast period owing to the lack of IT professionals in organizations. The challenge faced by most of the CIOs is managing IT environments. The manage Services provider offers low-cost solutions with security, which enables the organization to run its operations efficiently.
Based on Organisation Size, the Large Enterprises segment is anticipated to lead the market during the forecast period owing to the increasing adoption among large enterprises as compared to small and medium enterprises. Manage Services enable the organization to minimize overhead cost and enhance the productivity of the company. Moreover, the high cost of downtime and increasing data loss of the companies will further encourage them to opt for managed services over the forecast period.
Based on the deployment type, the on-premise segment is projected to lead the market during the forecast period owing to the increasing adoption of managed services among organizations due to growing concern related to data security. The managed service provider offers services to the client’s premises.
Based on the Vertical, the BFSI segment is expected to lead the market during the forecast period. The growing acceptance of managed services in the BFSI sector due to the growing demand for managed services to maintain and manage data from trading instruments and to keep record, reporting, and calculations. MSP provides various valuable services for market data, hosting, ultra-low latency trading, and other related services.
Based on the region, North America is projected to lead in the global Managed Service market during the forecast period owing to the increasing adoption of managed services to improve profit margin in this region.
The major key players in the Managed Service market include IBM Corporation, Cisco Systems, Inc., Fujitsu Ltd., Accenture plc, Atos, DXC Technology, AT&T Inc., Ericsson, Cognizant, HCL Technologies Limited, TATA Consultancy Services Limited, Infosys Limited, among others.
- In Jan 2020, Cisco entered into a partnership with IBM to offer a managed private cloud service for VMware and IBM/RedHat OpenShift environments. Under this partnership, combining Cisco’s data-center portfolio with IBM Services, the two companies provide on and off-premises private cloud to minimize risk and complexity.
- In Jun 2018, IBM entered into a partnership with Commvault. This partnership will allow Commvault’s data management and protection software, includes the Commvault Data Platform, to be delivered through IBM Business Resiliency Services.
The Global Managed Service market has been segmented based on the Service Type, organization size, deployment type, vertical, and key region. Based on Service Type, the market is segmented into Managed Security Service, Managed Network Service, Managed Data Center, and IT Infrastructure Service, Managed Communication and Collaboration Service Managed Mobility Service and Managed Information Service. Managed Security Service is further segmented into Managed Identity And Access Management, Managed Antivirus/Antimalware, Managed Firewall, Managed Risk And Compliance Management, Managed Vulnerability Management, Managed Security Information And Event Management, Managed Intrusion Detection Systems/Intrusion Prevention Systems, Managed Unified Threat Management, Managed Encryption, and Others. Managed Network Service is further segmented into Managed Network Provisioning, Network Monitoring, And Management, and Managed Software Defined-Wide Area Network. Managed Data Center and IT Infrastructure Service are further segmented into Storage Management, Server Management, Managed Print Services, and Others. Managed Communication and Collaboration Service is further segmented into Managed Voice Over Internet Protocol, Managed Unified Communication As A Service, and Others. Managed Mobility Service is further segmented into Device Life Cycle Management and Application Management. Managed Information Service is further segmented into Business Process Management, and Managed Operational Support Systems/Business Support Systems. Based on Organisation Size, the market is segmented into Large Enterprises, and Small and Medium-Sized Enterprises. Based on Deployment Type, the market is segmented into on-premises and cloud. Based on vertical, the market is segmented into Telecom, Information Technology, Banking, Financial Services, and Insurance, Consumer Goods and Retail, Manufacturing, Healthcare and Life Sciences, Education, Energy and Utilities, Media, and Entertainment, and Others.
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