The IT industry channel partners Focused on Managed services will experience a significant growth in 2023. Despite the global economic uncertaintythe prospects foreseen for the Managed services indicate a global growth of 12.7%reaching a total value of US$472 billion. This growth exceeds the estimate of the 3.5% in it overall IT spending. This was revealed by the global study commissioned by Cisco (NASDAQ: CSCO) and made by Canalys.
Regional growth
For the Latin American region, income from managed services currently equal to US$11 thousand millionsand is expected to experience a 11-12% growth rate. In Mexicothe income from managed services delivered by partners in 2022 showed impressive growth, growing 15.7% compared to the previous year. This increase amounts to a total of US$2.6 billion of the total market in the country.
In the case of Brazilthe income from managed services provided by channel partners in 2022 showed impressive growth, increasing by 14% compared to the previous year. This increase represents a total of US$3.4 billion.
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Key factors: cybersecurity, specialization, demand for flexible consumption models
A key element of this demand is the pressing need for cybersecurityas organizations around the world face a context of rapidly evolving threats. This challenging panoramaBesides the Global cybersecurity and IT talent shortageled many companies to resort to managed services partners to obtain their experience and technological support. The results of the study indicate that the 56% of channel partners expect that revenue from managed cybersecurity services grow this year.
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“Customers are integrating more technology in their operations and expect their IT partners provide them agility, value and flexible consumption models to efficiently manage their growing and complex technology needs,” said Alexandra Zagury, vice president of Partner Managed Services and as-a-Service Sales at Cisco. “He evolving IT partner ecosystem that sell managed services is adapting to meet customer needs and challenges, finding ways to modularize and package what were once custom solutions. We anticipate more innovation and specialization by channel partners through managed services what are you offering differentiated business results and exceptional experiences“he added.
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Global growth
Driven by global growth, the trust among channel partners that sell managed services increased significantly. The study reveals that, in June 2023, the 35% of channel partners stated that they expect a growth of at least 20% in its managed services businesses this year. This represents a significant increase compared to the 27% reported in 2022 and points to a rapid updating of services managed by organizations Of all sizes. “Managed services are the driving force behind adaptability and the growth of the global IT industry“, said Robin OdySenior Analyst at Canalys.
The study also identified the cloud infrastructure management as another key growth opportunity. As organizations digitize their operations and move to the cloud, they face challenges with a complex cloud infrastructure that encompasses private and public clouds, along with distributed applications and services. This increased the need for administration and cloud infrastructure experienceand 55% of partners say that they expect revenues in this segment grow in the current year.
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It is also likely that the revenue growth of managed services providers accelerate with emerging technologies such as AI and the growing emphasis on sustainability measures driven by investments in IT. According to the study, almost 6 out of 10 partners (59%) believe that AI represents a business opportunityand the 39% affirms that it will be “significant” or “gigantic”. Likewise, the 57% believe that customers would be willing to pay a premium for sustainable products and solutions.
“In their essence, the Managed services consist of Businesses get the most out of technology investmentsand as they arise new technologiesmanaged services are vital for the digital business strategy of an organization. By specializing in specific verticals, technologies, or even geographic areas, managed services partners are helping customers solve their ITEM, eliminate complexity and offer results that drive business“, said ody.
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The study shows that the partner income that provide managed services are prepared for a global growth between 2023 and 2025with two digit figures in the Compound Annual Growth Rate (CAGR or CAGR as it is known in English) expected in all regions.
In Pacific Asiathe sector is expected to grow between 14% starting at US$95 billion. In Europe, Middle East and Africawhere managed services revenue currently stands at $122 billion, revenue growth is expected 12%. Latin America will grow between 11% and 12% from US$11.5 billionwhile North America will experience growth of between 10% and the 12% starting at US$190.6 billion.
Source: Ambito
