A recent report by International Data Corporation (IDC), a global provider of market intelligence, advisory services, and events for the information technology, telecommunications, and consumer technology markets, has revealed that the managed services market spending in India is anticipated to grow at an impressive compound annual growth rate (CAGR) of over 9 per cent over the next five years.
The report titled IDC Playbook for Tech Sales Leaders: India Trends and Opportunities in Managed Services also finds that the landscape of managed cloud services is witnessing an extraordinary boom, with projections indicating a CAGR of 25 per cent by the year 2026.
In a press release, IDC said, “Despite recent headwinds, which include the Russia-Ukraine War, rising wage inflation, supply chain disruptions, inflation, and looming recession fears, there has been a remarkable surge in the need to digitize operations and enhance efficiency, agility, and the speed of IT systems. This, combined with talent shortages and the growing complexity of IT and cloud management, has helped offset the challenges posed by these economic conditions.”
Neha Gupta, Senior Research Manager, Software and IT Services market, IDC India, says, “In today’s dynamic business environment, the managed services market in India is not merely weathering economic challenges; it’s thriving. The robust growth in managed cloud services, coupled with the evolving demands of enterprises, underscores the critical role of innovation, adaptability, and customized solutions.” She further says, “The future belongs to those who can seamlessly navigate the cloud landscape, leveraging AI technologies and tailoring pricing models to meet the unique needs of their clients.”
The report explains that the driving force behind this expansion is “the escalating demand for hosting infrastructure services as businesses continue to migrate their on-premises applications to cloud environments and service provider-owned data centers.” It further says, “Hosting infrastructure services are also experiencing a surge in demand due to the preference for engaging with managed service providers (MSPs) to efficiently manage and optimize infrastructure and workload performance across various cloud platforms.”
Previously, in 2022, Fortune Business Insights had estimated the value of the global managed services market at US$ 255.86 Billion in 2022, and had projected it to grow from US$ 283.90 Billion in 2023 to US$ 671.14 Billion by 2030, exhibiting a CAGR of 13.1 per cent during the forecast period.
