January 24, 2018
WELLESLEY, Mass., Jan.24, 2018– Regional IT migration to cloud technologies, risk reduction, IT cost reduction and compliance with ever more complex regulatory regimes are helping shape the global managed IT services market, according to a report by BCC Research.
The global market is anticipating a compound annual growth rate (CAGR) of 11.5% through 2021, when the sector could be worth $256.5 billion, according to the report Managed IT Service Providers: Global Markets to 2021.
A handful of large companies dominate the market. Major players mentioned in this report include IBM, DXC Technology, Fujitsu, Atos, Deutsche Telekom, Tata Consultancy Services, Huawei, Cisco, Accenture, and Wipro. Midsize and emerging companies include Symantec, Secure Works, DMI, Rapid 7, Onepath and Infrascale, among others.
“Security services constitute only 12.3% of the U.S. market, but we are expecting it to grow faster than all other segments over the next five years because of rising cyber-attacks and increasing demand for threat protection services to deal with them,” said Michael Sullivan, BCC Research Senior Editor.
Market Restraints Include Internet Access and Reductions in Free Trade
A number of factors are conspiring to limit managed IT services growth—chief among them being poor infrastructure in emerging markets limiting access to the Internet. Globally, Internet access varies widely, with countries in South Asia and sub-Saharan Africa having the lowest rates of Internet usage. Another factor is the rise of the cloud computing service model which is displacing traditional IT managed services. Through infrastructure as a service and software as service, IT organizations gain the benefit of low cost on demand computing without the need to hire a managed services firm to operate the infrastructure. which will negatively impact growth. Finally, worldwide trends toward a reduction in free trade are making the market more complex for IT managed services operating across regional boundaries. The U.K.’s withdrawal from the European Union, and the possibility of a U.S. exit from the North American Free Trade Agreement are likely to change the rules of commerce in these regions
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Managed IT Service Providers: Global Markets to 2021( IFT156A )
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