7 Latest Trends to Watch Out for in Managed Services Market
Published: 2021-05-19 06:54:50

Managed services are responsible for the functionality of an organization's IT services & infrastructure, allowing the company to focus increasingly on its core competences. Increasing requirements for managed services are driven mainly by unpredictable, volatile macro-economic conditions and increased pressure for technological progress transformation. In the future, the latest trends in managed services will create lucrative growth opportunities for market vendors.

The world is observing a paradigm shift in terms of recent & latest trends and technological advancements redefining the way business is done. The datum that business models face great pressure from macroeconomic, regulatory, and other critical market forces, have demanded an amplified focus on operational effectiveness and efficiency. However, this might make the businesses sense the burn on their cost, capital, and revenue. In addition, they are progressively turning to <a href="https://vaporvm.com/managed-services/">Managed services</a> to address these complications in order to focus their time on activities that more valuable to their business.

The global managed services market is expected to see a robust growth in the prediction period 2019-2027, according to a report published by Research Dive. Because of the increased use of cloud technology for efficient operating flows in numerous organisations all over the world, the global market is expected to exceed US$410,707.9 million by 2027.
What are Managed Services?

A managed service provider (MSP) is responsible for the functionality of an organization's IT services and infrastructure and is able to focus on its core competences more and more. The MSP partner therefore transforms the business processes and operations of an organisation and manages the managed model in order to improve its operating efficiency and productivity.

Diverse factors drive the increased demand for managed services, some of which are listed below:

A volatile macroeconomic environment that is unpredictable.
Increased transformation pressure while maintaining the pace of technological progress.
Need to meet growing regulatory compliance requirements.
Lack of technical expertise both deep and internal.

Latest Managed Services Trends

In the managed services market (security, IT, cloud) these are the most recent trends:

Enhanced security and growth stakes in cyber attacks

Managed service providers' customers typically believe that the latter is responsible for the safety of their information and data. In recent years there have been an increase in the number of cyber attacks. This has forced many firms and organisations to think for the sake of safety first.

Managed service providers are therefore making further efforts to secure their customers' service infrastructure. It is thus not only a question of having safety solutions, but also of recovering and defending against attacks.

    Cloud, Outsourcing, and Automation

Cloud: Increasingly, new platforms are being built to enhance customer engagement that meet the digital transformation needs of companies. Multi-cloud applications are showing enormous growth, whereby customers rely heavily on one cloud while sporadically using the other. The managed services providers can here take advantage of the great opportunity by offering price models based on consumption.

Outsourcing: it is the third factor expected to have an effect on the market for managed services. Increased outsourcing will reduce MSP's dependence on traditional service standard agreements (SLAs) and more on expertise level agreements (XLAs). XLAs will focus more than uptime on staff satisfaction and customer satisfaction.

Automation: A significant amount of work can be replaced by the increasing amount of automation in IT environments. Managed services may expect the workload to decrease as most businesses are automated with each contract.

    Introduction of Independent Software Vendors (ISVs) and Telcos

Telcos or telecommunications service providers make use of their current scale & IT expertise to sell managed offers beyond voice and data services.

The subscription model has already been operated by Telcos and therefore it is well known. When these services enter the managed service area, the already managed services experience the stress of trying to increase income further and beyond in new and innovative ways.

    Emerging Technologies like Blockchain and IoT

Emerging technologies such as The Internet of Things (IoT) and Blockchain can provide management service providers with major opportunities. Companies do, however, need deep understanding and expertise. This gap can be identified by competitively managed services and substantial information on these advanced and emerging technologies. Furthermore, SMEs will take on virtual reality, IA, increased reality and other technologies. SMBs are also planned.

    Increased Mergers and Acquisitions

According to the review by the research analyst, companies that operate in the global managed services market have increased the number of fusions and acquisitions and are helping the market to exponentially expand.

    Enormous Growth in as-a-service Technologies

It is estimated that a surge will occur in the use of as-a-service technology such as the IaaS infrastructure, the SaaS platform (PaaS) etc.

The advantages of these technologies, as they are on subscription billing models, are different in scalability, security, costs. A managed service provider can help an organisation move to and manage these services easily.

    Demand for Outcome-based Services

Today, business customers look to expected or predefined results based on results. This can be seen as one of the reasons why customers opt for full stack and not one-tower service providers. The managed services therefore need to be developed to meet this trend in terms of the style of their functions and their management. As far as measurable results are concerned, the MSPs must be able to offer their business clients consulting services.
The Bottom Line

Only those who are prepared are given an opportunity. A lot of legacy work is therefore needed to build an effective management of services. Every process from preliminary evaluation to contract signing and ultimately management of services must be improved by the MSPs. Thus, MSPs can ensure that they are ready to capitalise on this competitive world of business by keeping up-to-date on the trend.