Managed services are poised to grow steadily over the next five years.
That’s according to a new report from MarketsandMarkets, which predicts a compound annual growth rate of 11 percent globally — from $152 billion this year to nearly $258 billion in 2022.
The firms names IBM, Cisco and Accenture among the major vendors. Also getting a mention as leading suppliers are Fujitsu, Atos, Tata Consultancy Services, Wipro, Huawei, HCL, Ericsson, Nokia Networks, DXC Technology, Dimension Data, Unisys and Netmagic (an NTT Communications company).
Enterprises’ growing IT infrastructure and increasing compliance requirements are the driving factors for the market. Moreover, the increase in cloud deployment among SMEs has led to the adoption of managed services, according to MarketsandMarkets.
The telecom/IT vertical is expected to contribute to the largest market share through 2022. Enterprises increasingly outsource IT needs such as infrastructure, network, security, mobility and communication to MSPs so they can focus on their core competencies and increase their efficiency.
The SMB segment is expected to grow at the highest rate over the next five years. Managed services help make SMBs feel secure about their network management, monitoring and security; IT infrastructure; and disaster recovery, to name a few.
North America has the highest market share in managed services. Many European companies such as Capgemini and Atos have acquired significant IT service operations in the United States and are expanding significantly there.
Also from MarketsandMarkets, the global contact center software market is estimated to grow from $13.3 billion in 2016 to $29.1 billion by 2022. That’s a CAGR of nearly 14 percent. Major players include Cisco, Avaya, Mitel, SAP, Five9, Oracle, 8×8, Unify, Alcatel-Lucent Enterprise, Genesys Telecommunications Laboratories, Enghouse Interactive, Huawei Technologies and Drishti Soft Solutions.
The biggest driver is the growing need among businesses to offer a seamless customer experience and to automate inbound and outbound operations, the report said.