Managed Services Market Size, Share, & Trends Analysis Report By Solution, By Managed Information Service (MIS), By Deployment, By Enterprise Size, By End-use, By Region, And Segment Forecasts, 2024 - 2030

Research Methodology

A three-pronged approach was followed for deducing the managed services market estimates and forecasts. The process has three steps: information procurement, analysis, and validation. The whole process is cyclical, and steps repeat until the estimates are validated. The three steps are explained in detail below:

Information procurement: Information procurement is one of the most extensive and important stages in our research process, and quality data is critical for accurate analysis. We followed a multi-channel data collection process for managed services market to gather the most reliable and current information possible.

• We buy access to paid databases such as Hoover’s and Factiva for company financials, industry information, white papers, industry journals, SME journals, and more.
• We tap into Grand View’s proprietary database of data points and insights from active and archived monitoring and reporting.
• We conduct primary research with industry experts through questionnaires and one-on-one phone interviews.
• We pull from reliable secondary sources such as white papers and government statistics, published by organizations like WHO, NGOs, World Bank, etc., Key Opinion Leaders (KoL) publications, company filings, investor documents, and more.
• We purchase and review investor analyst reports, broker reports, academic commentary, government quotes, and wealth management publications for insightful third-party perspectives.

Analysis: We mine the data collected to establish baselines for forecasting, identify trends and opportunities, gain insight into consumer demographics and drivers, and so much more. We utilized different methods of managed services market data depending on the type of information we’re trying to uncover in our research.

• Market Research Efforts: Bottom-up Approach for estimating and forecasting demand size and opportunity, top-down Approach for new product forecasting and penetration, and combined approach of both Bottom-up and Top-down for full coverage analysis.

• Value-Chain-Based Sizing & Forecasting: Supply-side estimates for understanding potential revenue through competitive benchmarking, forecasting, and penetration modeling.

• Demand-side estimates for identifying parent and ancillary markets, segment modeling, and heuristic forecasting.

• Qualitative Functional Deployment (QFD) Modelling for market share assessment.

Market formulation and validation: We mine the data collected to establish baselines for forecasting, identify trends and opportunities, gain insight into consumer demographics and drivers, and so much more. We utilize different methods of data analysis depending on the type of information we’re trying to uncover in our research.

• Market Formulation: This step involves the finalization of market numbers. This step on an internal level is designed to manage outputs from the Data Analysis step.

• Data Normalization: The final market estimates and forecasts are then aligned and sent to industry experts, in-panel quality control managers for validation.

• This step also entails the finalization of the report scope and data representation pattern.

• Validation: The process entails multiple levels of validation. All these steps run in parallel, and the study is forwarded for publishing only if all three levels render validated results.

Managed Services Market Categorization:

The managed services market was categorized into six segments, namely solution (Managed IT Infrastructure & Data Center, Managed Network, Managed Mobility, Managed Communication & Collaboration, Managed Information, Managed Security, Managed Backup and Recovery), managed information service (Business Process Outsourcing, Business Support Systems, Project & Portfolio Management), deployment (On-premise, Hosted), enterprise size (Small & Medium Enterprises, Large Enterprises), end use (BFSI, Government, Healthcare, IT & Telecom, Manufacturing, Media & Entertainment, Retail), and regions (North America, Europe, Asia Pacific, Latin America, Middle East & Africa).

Segment Market Methodology:

The managed services market was segmented into solution, managed information service, deployment, enterprise size, end use, and regions. The demand at a segment level was deduced using a funnel method. Concepts like the TAM, SAM, SOM, etc., were put into practice to understand the demand. We at GVR deploy three methods to deduce market estimates and determine forecasts. These methods are explained below:

Market research approaches: Bottom-up

• Demand estimation of each product across countries/regions summed up to from the total market.

• Variable analysis for demand forecast.

• Demand estimation via analyzing paid database, and company financials either via annual reports or paid database.

• Primary interviews for data revalidation and insight collection.

Market research approaches: Top-down

• Used extensively for new product forecasting or analyzing penetration levels.

• Tool used invoice product flow and penetration models Use of regression multi-variant analysis for forecasting Involves extensive use of paid and public databases.

• Primary interviews and vendor-based primary research for variable impact analysis.

Market research approaches: Combined

• This is the most common method. We apply concepts from both the top-down and bottom-up approaches to arrive at a viable conclusion.

Regional Market Methodology:

The managed services market was analyzed at a regional level. The globe was divided into North America, Europe, Asia Pacific, Latin America, and Middle East & Africa, keeping in focus variables like consumption patterns, export-import regulations, consumer expectations, etc. These regions were further divided into fifteen countries, namely, the U.S.; Canada; the UK.; Germany; France; China; India; Japan; South Korea, Australia; Brazil, Mexico; UAE; Saudi Arabia; South Africa.

All three above-mentioned market research methodologies were applied to arrive at regional-level conclusions. The regions were then summed up to form the global market.

Managed services market companies & financials:

The managed services market was analyzed via companies operating in the sector. Analyzing these companies and cross-referencing them to the demand equation helped us validate our assumptions and conclusions. Key market players analyzed include:

• Accenture PLC , Accenture PLC, a multinational corporation, offers professional services and technology solutions, including consulting and network management. With a presence in over 120 countries spanning North America, Europe, Asia Pacific, Latin America, the Middle East, and Africa, the company operates nearly 51 subsidiaries and affiliates. Accenture’s operations are divided into five distinct business segments: Accenture Technology, Accenture Operations, Accenture Digital, Accenture Strategy, and Accenture Consulting, with an additional focus on security services. The company caters to a wide range of industries, including automotive, banking, chemicals, communication & technology, energy, healthcare, consumer goods, life sciences, insurance, retail, travel, and natural resources, providing them with cloud and digital services. Through its Operations business line, Accenture offers services related to business processes, infrastructure, security, and cloud. In the fiscal year 2021, Accenture PLC made strategic investments exceeding USD 4.2 billion across 46 acquisitions.

• Alcatel-Lucent Enterprise , Alcatel-Lucent Enterprise is a global provider of infrastructure and communication solutions catering to executives, business operations, IT engineers, and customers. With over 830,000 customers worldwide, the company offers a wide range of products under the Alcatel-Lucent Enterprise brand, including communication systems, contact centers and attendants, ecosystem integration, phones, softphones and devices, communication management & security, switches, wireless LAN, location services, and network management & security. The company’s solutions encompass digital-age communications, digital-age networking, business continuity, and services. These products and services are offered to various sectors and industries such as education, healthcare, hospitality, government, and transportation. By deploying analytics, integrating systems, and leveraging mobility and the Internet of Things, the company delivers comprehensive infrastructure and communication solutions across diverse industries. Since 2016, Alcatel-Lucent has been operating as a subsidiary of Nokia Corporation and has a presence in countries like Australia, Brazil, China, and Japan.

• AT&T Inc. , AT&T Inc. is a provider of digital entertainment and communication services. It operates through four main divisions: Business Solutions, International, Consumer Mobility, and Entertainment Group, and reports under three segments: Communications, WarnerMedia, and Latin America. The Business Solutions division provides a variety of services including wireless equipment, data services, legacy voice services, strategic services, and more. The Entertainment Group offers audio programming, video entertainment channels, broadband & internet services, and voice services. The Consumer Mobility division provides prepaid and postpaid wireless voice and data communication services, as well as consulting and advertising services. The International division delivers digital television services. In November 2005, the company underwent a name change from SBC Communications Inc. to AT&T Inc. The company has a significant presence in Mexico and the Latin America region.

• Avaya Inc. , Avaya Inc. is a worldwide supplier of intelligent and customizable real-time communication applications, including unified communications, customer experience & contact centers, cloud, devices, software, and services. The company also provides a variety of services to its global customer base, such as professional services, managed services, support services, and learning and education services. The company operates through three main business segments: Global Communications Solutions, Avaya Global Services, and Avaya Networking. The Avaya Global Services segment specializes in providing cloud and managed services. Avaya Inc.'s service offerings encompass support for monitoring, training, deployment, implementation, and optimization. Avaya Inc. serves a broad spectrum of partners and caters to small, medium, and large enterprises across various sectors such as financial services, healthcare, insurance, hospitality, education, public safety, sports, and entertainment. The company also offers tailored solutions to the U.S. federal civilian government workforce, state and local government entities, and the military and defense industry.

• BMC Software, Inc. , BMC Software, Inc. provides a range of software, service, and system management solutions for businesses. It operates under two main divisions: Mainframe Service Management (MSM) and Enterprise Service Management (ESM). The MSM division delivers performance and mainframe data management solutions that ensure the reliability and availability of business applications, data, and systems, thereby supporting business processes. The ESM division provides a variety of solution suites, including those for capacity optimization, service impact management, event management, and performance management, among others. BMC Software, Inc. offers its products, services, and solutions to a diverse clientele, including government agencies, banks, financial service providers, and other service providers. The company markets and sells its offerings through various channels, including its own sales force, channel partners, distributors, resellers, and system integrators. BMC Software, Inc. is a subsidiary of Boxer Parent Company, Inc.

• CA Technologies , CA Technologies is a global company involved in the sale, delivery, and development of software products and services. It operates through three divisions: Enterprise Solutions, Mainframe Solutions, and Services. The Enterprise Solutions division provides a variety of software development, planning, and management tools for distributed computing, mobile, and cloud environments. The Mainframe Solutions division offers solutions for the IBM Z Systems platform, which supports numerous business operations. The Services division offers a variety of services, including management, education, application, implementation, and consulting. CA Technologies provides its products, services, and solutions to a diverse clientele, including banks, government agencies, telecommunication providers, healthcare institutions, and IT service providers, among others. The company markets its products and services through a direct sales force and a variety of channel partners, such as Managed Service Providers (MSPs), system integrators, service providers, resellers, and technology partners. As of October 2021, the company held 19,170 U.S. and other patents. CA Technologies has a global presence, with operations in North America, Latin America, Asia Pacific, Europe, the Middle East, and Africa. In November 2018, CA Technologies was acquired by Broadcom, Inc.

• Cisco Systems, Inc. , Cisco Systems, Inc. is a worldwide entity that designs, manufactures, and supplies networking hardware, telecommunications equipment, and services. The company caters to large corporations as well as small and medium businesses by providing hardware, software, and integrated communication solutions. Cisco’s network and communication solutions are also utilized by public institutions and government agencies. The company operates through three regional segments: Americas, Asia Pacific, Japan & China (APJC), and Europe, Middle East & Africa (EMEA). Cisco’s extensive portfolio of products and technologies spans multiple categories, including Next-Generation Network (NGN) routing, data center, switching, collaboration, wireless, security, service provider video, and other products. In addition to its products, Cisco offers a wide array of services such as optimization services, managed services, and technical support services. The company’s collaboration category integrates voice, data, video, and mobile applications across mobile and fixed communication networks, reaching multiple endpoints and related IT equipment like desktop and laptop computers, mobile phones, tablets, and virtual networks. The collaboration category includes products like IP phones, software-based Instant Messaging (IM) clients, call control, call center and messaging products, communication gateways, and unified communication, among others.

• DXC Technology Company , DXC Technology Company, a provider of IT services and solutions, operates across North America, Australia, Asia Pacific, and Europe. In 2017, it changed its name from Computer Sciences Corporation (CSC) due to a merger with Hewlett Packard Enterprise Company (HPE). The company’s operations are divided into three segments: Global Infrastructure Services (GIS), Global Business Services (GBS), and the United States Public Sector (USPS). GIS provides services such as cloud and platform services, the Internet of Things, mobility and workplace services, and security solutions. GBS offers a variety of technology solutions and services, including consulting, cloud applications and enterprise, business processes, analytics, and application management, development, testing, and modernization. The company caters to various industries like manufacturing, healthcare, and telecommunications. DXC Technology Company has formed over 250 partnerships with global market leaders, including strategic partners like AWS, Lenovo, Microsoft Corporation, ServiceNow, Oracle Corporation, International Business Machines Corporation, and HPE.

• Fujitsu Limited , Fujitsu Limited is a company that specializes in Information and Communications Technology (ICT) products and services, offering technology products like client computing devices, integrated systems, and servers. The company’s operations are divided into three segments: Device Solutions, Ubiquitous Solutions, and Technology Solutions. Its product range includes IT products and systems, infrastructure and middleware software, and electronic devices. Fujitsu provides a variety of services such as hybrid IT and cloud services, business and application services, managed infrastructure services, and enterprise and cybersecurity services. It also offers a range of infrastructure solutions, industry solutions, and business and technology solutions. The company serves various industries including automotive, manufacturing, telecommunication, and healthcare. Fujitsu is currently shifting its focus towards managed infrastructure services to meet the growing demands of its customers. Some of its major clients include NIPPO Corporation, Pete Lien & Sons, ST-Works, Inc., Virgin Money, Government of Alberta, TIGI Linea Corporation, and First Citizens Bancshares, Inc., among others.

• Hewlett Packard Enterprise Development LP , Hewlett Packard Enterprise Development LP, formerly a part of Hewlett-Packard Company, became an independent, publicly traded entity in November 2015 following a separation and distribution agreement. The company offers technology solutions to both public and business sectors and operates in over 170 countries globally. Its business divisions include Compute, High-Performance Compute and Mission Critical Systems, Storage, Advisory and Professional Services, Intelligent Edge, Financial Services, and Corporate Investments. The Enterprise Group segment’s portfolio comprises services integrated across servers, networking, and storage devices, aimed at reducing costs and improving business operations performance. The company’s servers typically utilize Linux, Windows, and other virtualization platforms supplied by software providers like VMware, Inc., and Microsoft Corporation. Additionally, the company provides technology outsourcing, consulting, and other services through the Enterprise Group segment.

Value chain-based sizing & forecasting

Supply Side Estimates

• Company revenue estimation via referring to annual reports, investor presentations, and Hoover’s.

• Segment revenue determination via variable analysis and penetration modeling.

• Competitive benchmarking to identify market leaders and their collective revenue shares.

• Forecasting via analyzing commercialization rates, pipelines, market initiatives, distribution networks, etc.

Demand side estimates

• Identifying parent markets and ancillary markets

• Segment penetration analysis to obtain pertinent

• revenue/volume

• Heuristic forecasting with the help of subject matter experts

• Forecasting via variable analysis

Managed Services Market Report Objectives:

• Understanding market dynamics (in terms of drivers, restraints, & opportunities) in the countries.

• Understanding trends & variables in the individual countries & their impact on growth and using analytical tools to provide high-level insights into the market dynamics and the associated growth pattern.

• Understanding market estimates and forecasts (with the base year as 2023, historic information from 2018 to 2023, and forecast from 2024 to 2030). Regional estimates & forecasts for each category are available and are summed up to form the global market estimates.

Managed Services Market Report Assumptions:

• The report provides market value for the base year 2023 and a yearly forecast till 2030 in terms of revenue/volume or both. The market for each of the segment outlooks has been provided on region & country basis for the above-mentioned forecast period.

• The key industry dynamics, major technological trends, and application markets are evaluated to understand their impact on the demand for the forecast period. The growth rates were estimated using correlation, regression, and time-series analysis.

• We have used the bottom-up approach for market sizing, analyzing key regional markets, dynamics, & trends for various products and end-users. The total market has been estimated by integrating the country markets.

• All market estimates and forecasts have been validated through primary interviews with the key industry participants.

• Inflation has not been accounted for to estimate and forecast the market.

• Numbers may not add up due to rounding off.

• Europe consists of EU-8, Central & Eastern Europe, along with the Commonwealth of Independent States (CIS).

• Asia Pacific includes South Asia, East Asia, Southeast Asia, and Oceania (Australia & New Zealand).

• Latin America includes Central American countries and the South American continent

• Middle East includes Western Asia (as assigned by the UN Statistics Division) and the African continent.

Primary Research

GVR strives to procure the latest and unique information for reports directly from industry experts, which gives it a competitive edge. Quality is of utmost importance to us, therefore every year we focus on increasing our experts’ panel. Primary interviews are one of the critical steps in identifying recent market trends and scenarios. This process enables us to justify and validate our market estimates and forecasts to our clients. With more than 8,000 reports in our database, we have connected with some key opinion leaders across various domains, including healthcare, technology, consumer goods, and the chemical sector. Our process starts with identifying the right platform for a particular type of report, i.e., emails, LinkedIn, seminars, or telephonic conversation, as every report is unique and requires a differentiated approach.

We send out questionnaires to different experts from various regions/ countries, which is dependent on the following factors:

• Report/Market scope: If the market study is global, we send questionnaires to industry experts across various regions, including North America, Europe, Asia Pacific, Latin America, and MEA.

• Market Penetration: If the market is driven by technological advancements, population density, disease prevalence, or other factors, we identify experts and send out questionnaires based on region or country dominance.

The time to start receiving responses from industry experts varies based on how niche or well-penetrated the market is. Our reports include a detailed chapter on the KoL opinion section, which helps our clients understand the perspective of experts already in the market space.