Managed Services Providers

June 2018

Sectorwatch

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.

 

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 exceeds the average of the last 3 years EBITDA margin, a condition that may attract new entrants