Managed Services Market – Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented by Deployment (On-premises, Software), By Type (Managed data center, Managed security, and Managed communications), By End-User Industry (BFSI, IT and Telecommunication, Healthcare, Entertainment and Media, Others), By Region, Competition 2021-2031F

Forecast Period	2027-2031
Market Size (2025)	USD 288.01 Billion
CAGR (2026-2031)	9.79%
Fastest Growing Segment	Entertainment and Media
Largest Market	North America
Market Size (2031)	USD 504.41 Billion

Market Overview

The Global Managed Services Market will grow from USD 288.01 Billion in 2025 to USD 504.41 Billion by 2031 at a 9.79% CAGR. Managed services refer to the systematic outsourcing of business administration and management responsibilities to a third-party provider to enhance operational effectiveness and strategic focus. The market is primarily propelled by the escalating necessity for organizations to reduce operational expenditures and the critical need to access specialized technical expertise that is often unavailable internally. Furthermore, enterprises are increasingly compelled to leverage these external partners to maintain focus on core business competencies while ensuring continuous system reliability and compliance with stringent regulatory standards.

A significant challenge that could impede market expansion is the persistent shortage of skilled professionals required to manage increasingly complex IT environments and security protocols. This talent gap limits the capacity of service providers to scale their operations effectively and meet the growing volume of client demands. According to the Global Technology Industry Association, in 2025, nearly 40% of channel firms cited the difficulty of finding workers with the right skills as a significant inhibitor to business success.

Key Market Drivers

The rising sophistication of cyber threats and stringent data security requirements act as a primary catalyst for the Global Managed Services Market. As attack vectors become more complex, organizations are increasingly unable to maintain adequate defense mechanisms in-house due to the prohibitive costs of establishing 24/7 Security Operations Centers. Consequently, businesses are aggressively outsourcing security functions to managed service providers to mitigate financial risks and ensure regulatory adherence. According to IBM, July 2024, in the 'Cost of a Data Breach Report 2024', the global average cost of a data breach reached $4.88 million, marking a significant increase that incentivizes enterprises to leverage the specialized protection offered by external partners.

Simultaneously, the rapid integration of advanced technologies, particularly AI and automation, is reshaping service delivery models and driving market adoption. Service providers are embedding intelligent analytics to predict system failures, automate routine maintenance, and enhance service efficiency for their clients. This shift is evident in provider strategies, as according to Barracuda Networks, May 2024, in 'The Evolving Landscape of the MSP Business Report 2024', 95% of surveyed providers are either already providing AI services or planning to introduce them within the next 12 months. This technological evolution supports robust sector growth, with organizations prioritizing IT services spending to modernize operations. According to CompTIA, March 2024, global spending on IT services is forecast to jump by 8.7% in 2024, reaching $1.5 trillion, outpacing software sales for the first time.

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Key Market Challenges

The persistent scarcity of qualified technical personnel presents a substantial barrier to the sustainable expansion of the Global Managed Services Market. As IT environments become increasingly intricate, particularly regarding cybersecurity and cloud infrastructure, providers require highly specialized staff to maintain service levels. When managed service providers cannot secure this essential talent, they are often forced to delay client onboarding or decline new contracts entirely to avoid service degradation. This inability to scale workforce capacity directly correlates with stagnant revenue growth, as the business model relies heavily on human capital to deliver continuous monitoring and strategic support.

Moreover, the intense competition for limited expertise drives up labor costs, thereby eroding profit margins and reducing the capital available for market reinvestment. The gap between the supply of skilled workers and the demand for advanced technical support continues to widen, creating a bottleneck for the entire sector. According to CompTIA, in 2024, 52% of channel companies reported experiencing a workforce shortage, specifically noting challenges in finding candidates with the required cybersecurity and technical proficiencies. This labor deficit effectively caps the industry's potential to meet the surging global demand for outsourced IT administration.

Key Market Trends

The Evolution of Hybrid and Multi-Cloud Orchestration Services is becoming a definitive structural trend within the Global Managed Services Market. As enterprises increasingly distribute workloads across on-premises infrastructure and diverse public cloud platforms to optimize cost and performance, the operational complexity of managing these disparate environments has surged. Service providers are actively responding by deploying unified orchestration platforms that offer 'single pane of glass' visibility, enabling seamless application mobility and consistent policy enforcement across complex infrastructure landscapes. This operational shift is substantiated by the high frequency of workload migration; according to Nutanix, March 2024, in the 'Enterprise Cloud Index 2024', 95% of organizations moved applications from one environment to another over the past year, underscoring the critical demand for external partners capable of navigating hybrid interoperability.

Simultaneously, the Focus on Sustainable and Green IT Management Solutions is emerging as a vital service differentiator. Organizations face intensifying pressure from regulators and stakeholders to reduce the carbon footprint of their digital infrastructure, yet many lack the internal tools to effectively measure and mitigate energy consumption. Consequently, managed providers are integrating GreenOps frameworks and carbon-aware computing strategies into their service portfolios to assist clients in achieving environmental compliance and net-zero targets. This gap between ambition and execution creates a lucrative opportunity for providers; according to Kyndryl, November 2024, in the 'Readiness Report 2024', while 90% of business leaders prioritize sustainability in their IT modernization efforts, 54% of organizations struggle to meet their ESG goals, driving the necessity for specialized external support.

Segmental Insights

The Entertainment and Media sector is currently identified as the fastest-growing segment within the Global Managed Services Market. This rapid expansion is primarily driven by the industry's aggressive digital transformation and the global surge in Over-The-Top (OTT) media consumption. As media enterprises migrate to cloud-based infrastructures to manage vast libraries of high-definition digital assets, they increasingly rely on managed services for scalability and operational efficiency. Furthermore, the necessity for robust data analytics to personalize viewer experiences and ensure secure, low-latency content delivery compels organizations to outsource complex IT functions to specialized providers.

Regional Insights

North America leads the global managed services market due to the extensive integration of cloud technologies and established digital infrastructure across the United States and Canada. Businesses in the region prioritize outsourcing IT functions to enhance cybersecurity and maintain operational continuity. Additionally, strict adherence to compliance standards from organizations like the National Institute of Standards and Technology drives the demand for specialized external management. The concentration of key service providers and high corporate IT spending further solidifies North America’s status as the primary revenue generator in this sector.

Recent Developments

• In September 2024, Tata Consultancy Services (TCS) expanded its collaboration with Google Cloud to launch advanced cybersecurity offerings, including a specialized Managed Detection and Response (MDR) solution. This new service integrated the hyperscaler’s security operations platform with the company’s contextual industry knowledge to provide continuous threat monitoring and rapid response capabilities. The initiative was designed to assist enterprises in strengthening their cyber resilience and securing their digital transformation journeys across hybrid and multi-cloud environments. By utilizing artificial intelligence and automation, the managed service aimed to significantly reduce the time required for security teams to detect and neutralize threats, reflecting the market's shift towards proactive managed security measures.
• In May 2024, IBM unveiled a new partner program specifically tailored for the managed service provider (MSP) community to enhance their ability to deliver automation and security solutions. Introduced during the company’s annual conference, this initiative provided partners with access to a curated set of products designed for simplified deployment and efficient management. The program aimed to empower MSPs to offer differentiated value to their clients by leveraging advanced technologies, including artificial intelligence and hybrid cloud capabilities. This strategic launch acknowledged the unique position of managed service providers as trusted advisors and sought to accelerate their business growth through dedicated resources, streamlined onboarding, and aligned transaction models.
• In March 2024, Kyndryl and Cloudflare announced a global strategic alliance focused on delivering managed network and security services to facilitate enterprise multi-cloud connectivity. This collaboration combined extensive infrastructure services expertise with a leading connectivity cloud platform to offer a comprehensive managed WAN-as-a-Service solution. The partnership was established to help organizations modernize their corporate networks, reduce operational complexity, and enhance cyber resilience through integrated Zero Trust security measures. By utilizing this joint offering, enterprises were enabled to streamline connectivity across diverse cloud environments and data centers, highlighting the increasing reliance on managed services to secure and optimize distributed digital infrastructure.
• In January 2024, Accenture entered into an agreement to acquire Navisite, a prominent digital transformation and managed services provider, to significantly expand its infrastructure and application capabilities across North America. This strategic acquisition was designed to integrate approximately 1,500 skilled professionals into the company's Infrastructure Engineering practice, thereby enhancing its ability to support clients in their cloud transformation and artificial intelligence modernization journeys. By leveraging the acquired firm's deep expertise across multiple cloud platforms and enterprise applications, the company aimed to deliver more robust managed services that enable businesses to modernize their digital core while maintaining operational efficiency.

Key Market Players

• Accenture PLC
• International Business Machines Corporation
• DXC Technology.
• Capgemini SE
• Wipro Limited
• HCL TECHNOLOGIES LIMITED
• ATOS SE
• CGI Group Inc
• Infosys Limited
• NTT DATA Corporation

By Type	By End-User Industry	By Region
Managed data center Managed security and Managed communications	BFSI IT and Telecommunication Healthcare Entertainment and Media Others	North America Europe Asia Pacific South America Middle East & Africa

Report Scope:

In this report, the Global Managed Services Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• Managed Services Market, By Type:

• Managed data center
• Managed security
• and Managed communications

• Managed Services Market, By End-User Industry:

• BFSI
• IT and Telecommunication
• Healthcare
• Entertainment and Media
• Others

• Managed Services Market, By Region:

• North America
• United States
• Canada
• Mexico
• Europe
• France
• United Kingdom
• Italy
• Germany
• Spain
• Asia Pacific
• China
• India
• Japan
• Australia
• South Korea
• South America
• Brazil
• Argentina
• Colombia
• Middle East & Africa
• South Africa
• Saudi Arabia
• UAE