In 2020, the global market for managed services was valued at 219.59 billion US dollars. It was valued at 243.33 billion US dollars in 2021, and it is expected that by 2028, its market size could grow up to 557.10 billion US dollars at a CAGR of 16.1% in the seven years between 2021 and 2028.
Why Businesses Need Managed Services
Today businesses need to scale, upgrade, and innovate at a rapid pace and managed services help businesses to do it with least impact. In addition, the increased demand to meet end-to-hosting software and the need to secure IT infrastructure from harmful cyber threats is also expected to drive growth in the managed services industry within the forecast period.
It is estimated that successful deployment of managed services reduces the cost of IT services by 25-45%. Efficiency in operations is also improved by as much as 65%.
The expected growth in market size for managed services is driven by its increasing importance and demand in various industries such as IT, healthcare, finance, telecommunication etc. Small and medium-sized business enterprises are expected to form the bulk of patronage for managed services since most are looking to outsource their non-core activities.
As of 2020, the most patronized managed services gigs were hosting and cloud storage/backup in Europe and North America. As a result, companies can enjoy the advantages of IT infrastructure without the need for substantial in-house hardware. Soon, it is expected that IT processes such as cloud, internet of things (IoT) and big data are expected to hold great potential for managed service providers.
Benefits of Managed Services
- Focus on Core Objectives
Outsourcing your IT needs to an external managed service provider frees up your employees to focus on the specified jobs they were hired to do while adequately addressing your IT needs.
An overworked IT unit might not be able to scale its output to match the increased demand that comes with growth as a company, expecting your in-house IT team to provide the required round-the-clock coverage would lead to burnout and decreased output quality.
A managed service provider (MSP) will offer you a flexible service program and help you determine the level of service you require—if it’s just a couple of services or if you need to outsource your whole IT operation.
- Cost Efficiency and Expertise
One of the primary benefits of hiring a managed service provider is that it reduces expenditure and eliminates the need to hire and train new full-time staff. As a result, the opportunity to have essential IT skills on an outsourcing basis is very attractive, and most managed service providers offer a hybrid model of both offshore and onshore resources.
Since a managed service provider tailors its services to match your specialized needs, it eliminates the need for worry about unexpected service costs. It enables your company to move from a capital service model to an operating expense model.
Also, the ever-evolving nature of IT technology means new problems during operations could pop up, and your in-house IT team might lack the expertise or experience to solve them. While there’s the option of hiring new staff that possesses the needed knowledge to solve the problems, the cost of hiring could add strain to the overhead cost of operations. It is easier and recommended to get help to overcome such problems from a managed service provider.
An advantage of employing a managed service provider is scalability. It is difficult to predict the rate at which a small or medium-sized business will grow. Therefore, flexibility that mirrors a business’s growth is necessary. It enables businesses to scale up or down as they see fit.
Having a managed service provider to handle some or all your IT technology needs facilitates a company’s operations. Therefore, small, and medium-sized businesses should adopt the services offered by managed service providers to save on costs and develop an IT technology plan that is flexible and suits their evolution as a business.
Why choose ProTech’s managed IT services?
Our Managed IT Service team works with you to plan, budget, and provide strategic oversight. Let ProTech partner with you to align your company’s IT strategy with your goals for growth. Contact our team today to learn more about Managed IT Services.