The global managed services market is expected to reach USD 296B by 2023, which is partly driven by the increased need for advanced threat protection resulting from a rise in cyber security attacks and its cost-effectiveness to outsource security. Changes such as increased digitization and migration to the cloud infrastructure is also attributed to the high demand for managed IT services. As a result of the increased capital expenditure for cloud and managed services by SMEs, the market is expected to experience growth through 2018-2023.
- 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 exceeds the average of the last 3 years EBITDA margin, a condition that may attract new entrants