Managed Service Providers

November 2017

Sectorwatch

The Managed Service Providers (MSP) market and business model is flourishing. Small & medium businesses are expected to have the highest CAGR of approximately16% during the forecast period, 2017–2022. The high growth rate is due to the benefits of adopting managed services, such as reduced IT costs and increased employee productivity, which are critical for small & medium businesses according to Mordor Intelligence. 

Industry Trends:

  • Current revenue growth rate is less than the average of the last 3 years, indicating that the market may be flattening or declining
  • Current gross profit margin is less than the average of the last 3 years gross profit margins, indicating customer pricing power
  • Current EBITDA margin is less than the average of the last 3 years EBITDA margins, which may signal further consolidation