North America is the largest contributor to the managed services market among all regions. The top countries contributing to the managed services market in North America include the US and Canada, of which, The US contributes about three-fourth market share. The market in North America is expected to have a slow growth rate by 2022 compared to other regions, as the managed services market in this region is well-established and stagnant. The North American market provides a suitable environment for startups and SMEs, in terms of government regulations and compliance. Owing to this factor, enterprises are growing rapidly and have heavy demand for managed services. Therefore, North America has the highest market share in the managed services market. Many European companies such as Capgemini and Atos have acquired significant IT service operations in the US and are expanding significantly in North America. This region includes major managed service providers such as IBM, Cisco, and DXC Technology. These service providers have a tremendous amount of expertise in managing the infrastructure and maintaining operations, ranging from small businesses to multinational companies. Because of this expertise, North America has a suitable environment for growth of the managed services market.
Frequently Asked Questions
Which is the major driver of Managed Services market and what is the restraint faced?Driver: Increasing trend of cloud analytics and big data As the business requirements are dynamic, customers are looking for new solutions and services that can be implemented in today’s continuous changing technology. As solutions are increasing in different markets, the requirement for services has equally become important. It can be anticipated that gen-next integrated ICT services that include a vast range of professional and integrated services, is expected to grow to meet the increasing demand from businesses operating in analytics, big data, IoT, and infrastructure management. Now, with the upcoming technologies available for analyzing resources stored in the cloud, companies are taking advantage of the increased scalability and lower overhead, directing the shift from physical machines to cloud-based big data solutions. Moreover, the rising global trends in big data and analytics have distinctly become visible. Restraint: Concern over cloud security and privacy Organizations feel that using cloud managed services would result in loss of control over their organization and providing third parties access to their processes would hamper their privacy. Cloud managed services involve a number of third parties outsourcing their abilities, which can cause security and confidentiality concerns for infrastructures in mobility, networks, database, cloud and web applications, and virtualization. Thus, for the companies, the concerns for security and privacy remain the top restraint in the adoption of cloud managed services.
What are the services offered under the umbrella of Managed Services?Cloud Managed Services Market ofeers: Managed infrastructure services Managed print services Managed desktop services Managed backup and recovery services Others Managed network services Virtual private network services Network monitoring and maintenance services Others Managed security services Threat management services Vulnerability management services Incident management services Others Managed data center services Hosting services Storage services Others Managed mobility services Managed communication services Unified communications services Email communications services
Who are the key players that provide one of the best Managed Services?IBM Corporation (US), Cisco Systems (US), Ericsson (Sweden), Accenture PLC (Republic of Ireland), NTT DATA Corporation (Japan), Huawei Technologies (China), NEC Corporation (Japan), DXC Technology (US), Fujitsu Ltd (Japan), Centurylink (US), and Civica (UK). Ericsson offers managed cloud enablement services, managed mobile virtual network enabler services, network managed services, IT managed services, and broadcast managed services and network sharing, globally. These products help meet the rapidly changing and competitive cloud managed services market, as they offer fast services to the customers. Ericsson’s cloud offerings help capture malicious activities and maximize network efficiency of the customers. Furthermore, managed enterprise cloud provided by the organization gives a fully automated platform to monitor and maintain every activity on enterprise applications. The cloud services offer flexibility, thus enabling businesses to strengthen their competitive positions in the cloud managed services market. Ericsson offers the above-mentioned cloud services to speed up new services in the market, reduce TCO, and enhance customer experience.
Which challenge is faced by the vendors and what is the available opportunity?Challenge: Limited availability of IT experts in cloud The problem involved in delivering cloud managed services is one of the major challenges in the cloud managed services market. In order to meet the desired smooth performance expected of an optimal managed IT services, MSPs must focus on empowering their staff with the highest level of expertise. MSPs need to provide their workforces with superior technical competence, administrative, and managerial skills to ensure the efficient management of cloud managed services. Efficient workforce provides optimization and technical reliability of the IT systems. In the current scenario, MSPs are providing a number of technical training for enhancing as well as changing technology to their employees. Many courses and certifications related to cloud and analytics are conducted for the students willing to take up a cloud or managed services as a career. Furthermore, various universities across the world are providing managed service training that help experts to understand the changing needs of customers and the relevant issues that companies face. Opportunity: Rise in adoption of cloud Cloud technologies are one of the mandatory implementations for growing organizations. Cloud computing increases the efficiency of the infrastructure by reducing TCO by providing business agility, faster innovations, and mobility. With the help of cloud managed services such as mobility services, network services, and security services, organizations can handle their mobile devices, manage network security, and can also focus on providing better services and gain customer loyalty. Due to the increasing trend in cloud managed services, the leading vendors across the world are strategically expanding by partnering with or acquiring companies, which can provide the right solutions to overcome the challenges of cloud managed services. For example, APAC with its commercially diverse region has some of the advanced economies in the world such as Australia, Hong Kong, and Singapore with China and India as the fastest growing economy. The organizations in this region are witnessing a rise in new ways of working and an increase in cloud computing trends. This leads to increase in demand for cloud managed services to help organizations manage the changes.
Which are the recent developments made in Managed Services market?Some of the recent developments made are: In March 2017, Cisco acquired AppDynamics, a leader in application and business monitoring. This is expected to help Cisco and AppDynamics deliver visibility across the network and drive digital transformation to enhance customer experience. In February 2017, Ericsson partnered with Verizon, a CSP, to meet the customer demands. Through this partnership, Ericsson offered its software and services to Verizon. Ericsson also managed to strengthen its business portfolio of virtual network services globally, as it is widely adopted by the CSPs. In April 2017, IBM launched IBM Customer Insights CSP V1.5, which offers CSPs the ability to improve customer retention. It also enhances the existing analytic capabilities by delivering high values through refined retention analytics. In February 2017, NTT DATA collaborated with Oracle to bring healthcare Big Data to the Cloud. This collaboration would help both the companies in predictive modelling of resources. In March 2017, Huawei launched a cloud-based high performance unified CDN solution that enables flexible distribution and an enhanced scheduling capability. It supports fixed and mobile networks, such as IPTV, OTT content, online streaming video, internet cache, and B2B CDN In April 2016, Accenture partnered with Nokia to help companies build and monetize modern networks. The partnership helped deliver new industry solutions in customer experience and analytics, and network and business transformations
Where will all the developments in Managed Services take the industry in the long term?The cloud managed services market to grow from USD 27.1 billion in 2017 to USD 53.8 billion by 2022, at a Compound Annual Growth Rate (CAGR) of 14.6% during the forecast period. The major factors that are expected to be driving the cloud managed services market are increasing Information and Communications Technology (ICT) spending, growing trend of big-data and analytics, and the need to focus more on core business activities.
OpenText provides a range of Managed Services, whether on-premises (off cloud), in the OpenText Cloud, in hybrid scenarios or even in other clouds. The company provides full managed services for EIM solution with agreed upon SLA’s to meet business needs.
Accenture delivers managed services through several approaches, including gradual and phased mobilization, hybrid delivery model, and robust governance mechanisms. It provides cost-effective flexibility and scalability. Accenture offers its managed services across the globe and caters to organizations of all sizes, across industries.
Cisco is a leading provider of managed services catering to a wide variety of clients from across industry verticals. It has a comprehensive portfolio of managed services that comprise data center services, network services, security services, and collaboration services. Cisco’s managed services allow enterprises to transform traditional business operations into integrated business processes. Its services allow clients to boost productivity and performance.
CompuCom helps business plan and budget for every step of IT asset lifecycle. It leverage a proprietary, ITIL Integrated Infrastructure Management (IIM) framework that cuts costs and improves digital transparency while aligning technology management with business goals and corporate culture. It’s DaaS includes all the technology hardware, managed services, and consulting that need to select the right devices for business and keep them running, updated, supported and retired.
Fujitsu is a provider of Information and Communications Technology solutions, products, and services. It caters to a multitude of customers from various industries. Its offerings in the managed services arena include managed infrastructure services that decrease expenditure and increase efficiency through high-quality service design and technological innovation.
TCS managed security offers managed cloud security, cyber crisis management, managed security device management, and threat advisory and intelligence services. The managed services provided by TCS for contact center and unified communications support proactive as well as reactive monitoring of servers and applications. TCS also equips clients with technical support (IT operations) for seamless operations and improved end-customer experience.
ATOS provides managed workplace services that supply the workforce with the necessary tools and support to undertake the required tasks. Its solution ensures the execution of business processes as per workforce requirements. Through ATOS, the client’s computing and storage resources are optimized across their lifecycle.
AT&T offers a range of services to support day-to-day activities related to IoT. These activities include SIM management, billing, reporting, a bi-annual health check of IoT solutions, and console administration training. Managed services provided by the company maximize the capabilities of IoT solutions with skilled resources and thereby streamline business operations. AT&T focuses on internal resources to manage business and customers and eliminates the need for support staff for IoT solutions.
GTT offers multilayered security and comprehensive compliance packages backed by full management, support, and monitoring to protect confidential enterprise data. Managed security offerings by the company are flexible and help one choose from security delivered from a range of deployment modes such as from the cloud, on-premises, or hybrid. Managed security services also reduce risks related to blended attacks.
DXC Technology has a comprehensive managed services portfolio that includes cloud managed services. It offers customized services such as cloud services for AWS, managed services for Microsoft Azure, managed services for VMware, and managed services for virtual private cloud. The company’s cloud services allow organizations to focus on strategic business priorities by shifting the complexities of building and managing their IT infrastructure to DXC Technology.
Unisys provides centralized solutions and IT support for mobile engineers through its field engineering services. The company’s infrastructure solutions include data center, hybrid cloud, and collaboration services. Unisys Application Managed Services deploy the power of advanced analytics to implement a dynamic approach toward applications. The solutions are designed to be future-ready and to support cloud, hybrid, and on-premises deployment.
Sirius provides various end-to-end solutions and managed services to help companies manage existing environments with Information Technology Infrastructure Library (ITIL) based monitoring and management services. These services also help maintain business continuity and recover critical applications and data.