8 Key Factors That Justify The Unparalleled Growth Of The Managed Services Market

Thanks to increasing digitization in almost every sector of every industry, the need for managed services has only gone up. As more and more businesses are willing to cut down their costs by hiring managed service providers, the managed services market has already gained momentum and is expected to grow further in the years to come.

According to a report by Mordor Intelligence, the managed services market was valued at $152.05 billion in 2020 and is expected to reach a whopping $274.20 billion by 2026.

The demand for managed service providers is high in every major sector, especially when it comes to IT managed services. Instead of hiring full-time in-house IT professionals, organizations prefer hiring dedicated IT professionals on a contract basis.

Here are some of the key factors that justify the unparalleled growth of the managed services market:

1. Cutting Down Costs

Cost-cutting is a major factor when it comes to the increasing popularity and relevance of managed services. Availing of managed services allows you to cut down a significant amount of cost of hiring full-time employees. Instead of paying a fixed salary to employees even when their services are not required, companies prefer hiring managed services providers as and when required.

Also, most managed service providers offer a bundle of IT services including repairs, maintenance, cloud security monitoring, and many more in a single package. This helps organizations manage their finances and allocate their resources in the best way possible.

Further, hiring managed service providers helps companies avoid paying sunken costs in the form of insurance, office upkeep, and more. When you hire in-house employees, you need to spend money on onboarding them and providing them with enough training before they start working for the company.

When you outsource your IT services to dedicated managed service providers, you can save all this money that can be used for making better investments.

2. Faster And More Effective Responses

Most MSPs offer 24/7 support services to their clients with faster response times. In the age of digitization, businesses cannot afford to waste any time waiting for the service providers to respond and get their issues resolved.

Irrespective of what time of the day, week, or month it is, managed service providers are proactive in offering their services to organizations across the board.

3. Expertise And Specialization

When you avail of the services offered by managed service providers, you get dedicated professionals who are specialized in the concerned area of expertise. While in-house employees are often required to be “Jacks of all trades” and perform an array of activities, managed service providers excel in specific fields.

On hiring these professionals, you get experts with all required qualifications, certifications, training, and experience, ensuring the utmost quality of the services provided.

4. Use Of Latest Technology

Managed service providers are always updated with the latest technological advancements and trends depending on the needs of their clients. When you hire these professionals, you can rest assured that they will be in sync with the latest technologies.

When you hire full-time in-house IT employees, the management needs to take care of their training when it comes to making use of the latest technology. On the other hand, managed service providers get trained in the latest technology by themselves. All you need to do is hire them and start availing of their services. Such an easy and relieved approach is what leads to an unparalleled growth of the managed services market.

5. Focused Approach Without Distractions

As the in-house employees are affiliated with your organization, there are more chances of them being distracted and their focus getting diverted from their core jobs. This is likely to affect the overall productivity of your organization.

One of the key factors affecting the increasing prevalence of managed services is the focused approach of the service providers. As these professionals are not affiliated with your organization in any way, the scope and focus are limited to the work they are hired for doing. This allows them to give undivided attention to your organization, helping you get the desired results in the best way possible.

6. Constant Monitoring And Troubleshooting

When it comes to availing of IT managed services, you can have your system monitored constantly by the service providers. As opposed to on-premise infrastructure, cloud-based managed services involve security monitoring and data compliance on an ongoing basis.

This allows you to obtain the security status of your system in real-time. Whenever your system encounters any threat such as unauthorized access, misconfiguration, fraud, etc., managed services help you troubleshoot the issues and provide immediate remedies for the same.

7. Utmost Data Compliance

Data is rightly called the “digital gold” of the 21st century. It is important for an organization to collect, store, and manage data in a way that its security and privacy are maintained.

Managed services allow you to stick to data compliance regulations of your organization as well as your country. These regulations help you in winning the trust of your customers/clients by being transparent about the data collected from them. Data compliance plays an important role when you are dealing with sensitive records, such as financial and health records. Efficient managed services help you stick to all data compliance standards and streamline your security/privacy processes.

8. Easy Contact With Vendors

Maintaining a list of all vendors supplying IT equipment is always important for an organization. Most managed service providers help you handle hardware and software IT vendors. This relieves your employees from engaging in complicated and technical conversations with the vendors.

Moreover, managed service providers have a better understanding of the rates and trends involved in procuring IT equipment. This helps you get all your equipment at the best rates.

The Final Word

These were some of the major factors that have contributed to significant growth in the managed services market. Switching from hiring in-house IT employees to availing of managed services would help you in obtaining better services and cutting down your costs.