IT Managed Security Services – Procurement Best Practices & Sourcing Strategies

DESCRIPTION

IT Managed Services Market Global Size:

ELINT Market Research’s recent IT-managed services procurement market research report indicates a global market size of $26.5 billion worth in 2023 and is predicted to further grow at a 14% annual rate.  

Market Definition:

Participants working in the IT-managed services market assist businesses in efficiently handling their IT infrastructure, networks, digital security, cloud-based solutions, and online support. Hence, enterprises can concentrate on their main goals, without having to worry about everyday IT management operations. Further, apart from IT, other sectors that employ managed service suppliers include healthcare, wholesale, banking, telecommunications, manufacturing, industrial, and more.

Major IT Managed Services Market Drivers:

1. Advancement in Technologies – 

Organizations operating in the IT sector are constantly integrating new innovations in their businesses to stay competitive. Thus, this is a major factor driving demand for managed services providers, who can help them merge, optimize, and control their intricate IT infrastructures. 

2. Complexity of IT Domains – 

Another key aspect that propels the need for managed service providers is the increasing complexity of IT organizations, due to the integration of various technologies and cybersecurity measures. Hence, these corporations ask IT management companies to provide them with optimal performance, safety, and expandability.

3. Remote Work Advancement – 

As the remote and hybrid work models are rising, the requirement for IT-managed service providers also growing among businesses to ensure they execute seamless business operations.

IT Managed Services Market Challenges:

1. Consumers’ Hesitation to Adopt Outsourcing –

The IT-managed services market faces challenges due to some organizations’ trust issues in outsourcing their services. These businesses hesitate to provide access to their certain IT operations, due to worries about data protection. Hence, IT management firms experience troubles in convincing such buyers. 

2. Scarcity of Customization Options – 

Some IT-managed service suppliers encounter difficulty in meeting the particular technical needs of different organizations, and when they lack in offering required customization options, the consumers cancel their alliances. Hence, service providers must ensure to adapt, and offer flexible solutions. 

3. Failures in Network – 

Sometimes, IT-managed service providers face trouble due to disturbances or failures in the network, which can impact the project, they are working on. Therefore, in the absence of timely service deliveries, their clients can withdraw contracts. 

IT Managed Services Market Opportunities:

1. Expanding Digital Transformation – 

Managed services provider companies experiencing great opportunities due to the constant adoption of digital technologies like cloud computing. Thus, corporations that want to employ the benefits of cloud technologies, ask service providers to integrate this innovation in their businesses.

2. Rising Focus on Cybersecurity – 

Businesses seeking strong cybersecurity standards to safeguard from online hazards employ IT-managed service providers to catch threats and prevent sensitive data. Hence, it induces big opportunities in the IT-managed services market. 

3. Integration of Data Analytics & Artificial Intelligence – 

Data analytics and artificial intelligence (AI) help multiple IT organizations obtain significant insights from large and complicated data. Hence, businesses are hiring IT service providers to efficiently handle AI implementation. 

IT Managed Services Market Segmentation:

1. Type of Service – 

The foremost segmenting factor for IT-managed service companies is the type of service they are providing. These services include infrastructure handling, network security, customer support center.

2. Size of a Company –

The IT managed services market’s segmentation also depends on the size of the company, they are assisting since small, medium, and large enterprises comprise their distinct needs. Hence, IT service providers are required to deliver accurate and customized solutions.  

3. Type of End-User Industry – 

IT-managed service companies can provide their services to different sectors like medicine, banking, manufacturing, industrial and more. These sectors hire service providers to handle their specific technology-dependent operations. 

Predominant Sourcing Model in the IT Managed Services Market:

The predominant sourcing model helps businesses to use regional SOCs (security operations centers) of a security service provider from only one vendor. Also, organizations can organize their security duties into operational and functional categories. Generally, they prefer to outsource the operational genre from one local supplier and obtain benefits from his expertise. On the other hand, companies conduct in-house management of functional categories to make a balance.

High Maturity Regions in the IT Managed Services Market:

The high-maturity regions of the IT-managed services market include North America and Europe. These countries are occurring in adopting smart IT infrastructures, technological innovations, and settled atmospheres for IT service providers. Hence, these territories are overall contributing to the global success of the IT services market. 

Average Contract Duration in the IT Managed Services Market:

IT-managed service providers and their clients usually employ 3 to 4-year contracts to handle their long-term financial relationships. Also, this agreement can be refreshed every 18 to 24 months to manage regular hardware updates, which are essential to maintain optimal performance and safety of hardware.

Key Performance Indicators in the IT Managed Services Market:

Key performance indicators (KPIs) help consumers assess the service quality of IT-managed service firms. The first KPI is customer portal availability in which businesses examine the accessibility and usefulness of client interfaces. Another KPI is configuration response time, which assists in evaluating whether service providers can adjust and customize their IT configurations depending on clients’ evolving business needs.

Further, SOC availability helps in checking the constant monitoring and reaction abilities of IT service providers in case of cyber threats. Additionally, SLA breaches help in tracking IT-managed services suppliers’ commitment to mutually decide standards and goals.

Leading Suppliers in the IT Managed Services Market:

Leading brand names of the IT managed services market include AT&T​, BT​, Dell SecureWorks​, HPE​, IBM​, NTT​, Symantec​, T-Systems​, Trustwave​, TCS​, Verizon​, and Wipro​.