The global managed services market was valued at approximately USD 299.01 billion in 2023 and is projected to experience robust growth, expanding at a compound annual growth rate (CAGR) of 13.6% from 2023 to 2030. Managed services are increasingly crucial for organizations as they help minimize downtime, reduce redundancy, and offer tailored value-added services. These services include application testing, service catalog development, and expert consultancy, which are essential for businesses looking to optimize their operations. The use of various monitoring tools and the management of multiple layers of infrastructure by dedicated teams are key factors contributing to the growth of this market.
As enterprises worldwide focus on streamlining their infrastructure to reduce costs, there is a noticeable shift toward migrating to cloud platforms and adopting managed IT services. These services are helping organizations optimize their infrastructure expenses while enhancing their ability to compete effectively amid ongoing digital transformation. Companies operating within the managed services sector are actively innovating and launching services specifically designed to cater to the needs of enterprise businesses, positioning themselves to capture a larger share of this rapidly expanding market.
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To improve security, ensure compliance, and enhance overall business performance, companies in the managed services space are increasingly forming strategic partnerships. For example, in April 2023, Sinch, a partner of Microsoft Operator Connect, announced a collaboration with Synoptek to provide managed and professional services for the Microsoft Teams Phone System. This system integrates direct routing or operator connect capabilities, thereby enhancing communication capabilities for businesses. Other driving factors for the growth of the managed services market include the focus on improving operational efficiency through a sharper focus on core competencies, reducing operational costs, and the rising adoption of cloud-based technologies like automation, the Internet of Things (IoT), blockchain, and cloud computing.
Managed Information Service (MIS) Segmentation Insights
In terms of market segments, the Business Process Outsourcing (BPO) segment held the largest share, exceeding 40% of the market in 2022. This segment's prominence is due to the growing trend of utilizing BPO as a strategic approach to allow businesses to focus on their core strengths, improve profitability, and streamline operations. The growth of BPO services is expected to continue due to several key factors, including a focus on process automation, the adoption of social media management tools, and increased investments in cloud computing.
Additionally, various industries are increasingly integrating analytics with project and portfolio management services, recognizing that this combination significantly enhances decision-making capabilities. Project and portfolio management services are widely used by project managers for their ability to improve capacity planning, optimize resource management, increase productivity, and enhance agility. Furthermore, emerging trends such as the use of robotic process automation (RPA), artificial intelligence (AI), and the evolving nature of work are expected to further boost the demand for project and portfolio management services. The growing adoption of agile methodologies, particularly for analyzing user and customer experiences, is also contributing to the increased popularity of these services. Continuous product improvement and the iterative nature of agile approaches are helping businesses stay competitive and responsive to market needs.
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