ISG Finds Managed Services on the Rise in Q3, Thanks to Cost Efficiency
MSP Today –
The demand for managed services is driven by organizations seeking to streamline operations and enhance IT capabilities.
Managed services provide cost predictability, scalability, and enhanced security, helping organizations meet regulatory requirements.
Cost optimization is a major driver, with the global managed services market reaching a new high in the third quarter due to nine megadeals worth over $100 million each.
However, the combined global market, including XaaS and managed services, experienced a 3% decline in annual contract value.
Spending on Information Technology Outsourcing (ITO) grew by 17%, driven by application development and maintenance services, while business process outsourcing (BPO) declined by 6%.
The XaaS market fell by 13%, mainly due to a decline in infrastructure-as-a-service (IaaS), though software-as-a-service (SaaS) showed an 8% increase.
ISG raised its forecast for managed services growth to 5.4% for the year and maintained its forecast for XaaS revenue growth in 2023 at 11.5%.
Link: https://www.msptoday.com/topics/msp-today/articles/457456-isg-finds-managed-services-the-rise-q3-thanks.htm