More companies than ever are outsourcing their IT to managed service providers (MSPs). IT security concerns such as ransomware are fueling this growth explosion.
The global managed IT service market size was valued at $175 billion in 2018. This number is expected to see double-digit growth for at least the next 5 years, according to a report by Grand View Research.
“Managed services help improve operational efficiency, reduce operating expenses, and help businesses focus on core competencies,” according to Grand View Research. “They assist in optimal resource distribution and utilization to augment the overall profitability and operational efficiency. Technological advancements such as big data, cloud computing, and mobility services are also expected to drive the market growth. Scalable infrastructure and flexible managed services models are making it easier for businesses to respond to technological change.”
At AM Data Service, we have seen a spike in medical practices and professional service providers turning to us for managed IT services. Fear of cyber-attacks or, in several cases, recovery from recent attacks spurred their interest in outsourcing their business IT.
Bottom line: Companies can’t afford system downtime.
Hundreds of Midwest dental practices were shut down for days following an August 2019 ransomware infection. Learn more
In the first nine months of 2019, over 500 schools were attacked by ransomware. Learn more
View a Ransomware Attack Map to see the spread of ransomware attacks against medical, educational, and governmental organizations.
The ransomware epidemic has gotten so bad that the U.S. Senate passed the DHS Cyber Hunt and Incident Response Teams Act Of 2019. If passed, the legislation would authorize the Department of Homeland Security (DHS) to maintain “cyber hunt” and incident response teams to help private and public organizations protect themselves against cyber-attacks such as ransomware.
“This bipartisan legislation will allow the best minds in cybersecurity to work together to better protect our digital infrastructure and to respond to attacks,” said Sen. Maggie Hassan (D-NH), one of the bill’s sponsors. “I am pleased that this commonsense bill passed the Senate, and I urge my colleagues in the House to pass it without delay.”
In addition to cyber threats, companies are outsourcing IT to take advantage of advancements in cloud technologies and to address concerns such as market and regulatory change, technological change, and talent scarcity.
Suggestions from the Grand View Research report
- Small and Medium Enterprises are increasingly using these services to make use of its numerous advantages such as controlled IT costs, increased efficiency and competitiveness, and reduced risk, among others.
- The healthcare sector is anticipated to register increased demand to efficiently manage and organize their large volumes of patient data.
- North America is expected to maintain its dominance in the managed services and is anticipated to reach USD 120.44 billion by 2025, owing to the high concentration of Multinational Companies (MNCs) in the region.