An IT managed service provider manages and monitors IT infrastructure and networks. Cloud computing, data storage, improving productivity, and handling customers’ IT work are offered. The system also provides an efficient and productive method for organizations to enhance operational efficiency. Implementing managed services for IT reduces IT expenses significantly, increases organizational flexibility, and provides a technical advantage for better client and customer service.
IT contained benefits are determined by critical end-users they serve, such as the banking and finance industry, education, health care, manufacturing, and energy sectors. The penetration of big data, cloud computing, and efficient business models have stimulated the growth and demand for managed IT services.
As a result of the adoption of private cloud-based services by small businesses, IT managed services has increased. Data privacy and security concerns might affect the market’s growth since managed services providers are not appropriately tested for reliability.
Estimates of market size and growth
From 2017 to 2030, the managed IT services market is projected to increase at a CAGR of 9.4%. Moreover, the global IT worked services market was valued at USD 145.3 billion in 2016 and is expected to reach USD 249.4 billion by the end of 2030. Increasing IT industry growth and enhanced connectivity technologies drive the global managed IT services market.
Due to technological advancements in IT resources and enhanced infrastructure in IT management, North America commanded the largest revenue share in the global IT managed services market in 2017. The market is projected to grow at a CAGR of 3.6% over the forecast period. As the fastest growing economies rapidly adopt new technologies and developed countries like Japan, Korea, China, and India, the Asia Pacific IT managed services market is anticipated to overgrow during the forecast period.
Managed service providers are growing
Many chief information security officers told us that they couldn’t outsource security during the economic recession a few years ago because they thought it was an exempt function from outsourcing. Guess what? One in four companies have outsourced email filtering today, and another 12% are highly interested in doing so shortly.
The rest of the respondents have outsourced their vulnerability management – a treasure trove for potential hackers – and an additional 19% intend to do so within the following year. In 2009, security spending remained stagnant for the most part, but Forrester estimates that the managed services market increased by around 8%.
MSS solutions come in many forms, ranging from essential system management to more sophisticated log analysis using a variety of delivery mechanisms, such as software-as-a-service (SaaS) and cloud services to on-premise device monitoring and control.
Businesses choose MSPs for their competence rather than cost.
Low cost was initially the main reason for moving to managed services, but it is now only the fourth deciding factor.
Companies are also being pushed to use MSPs by several other factors. CISOs use MSPs for:
1. Increasing the quality of protection.
Most organizations have stretched their security resources too thin already, which causes increased workloads, more stress, and more mistakes.
Some companies lack or cannot afford the security expertise they need in certain areas, resulting in significant gaps in their security portfolios.
As opposed to investing internally, an MSP can fill the gaps and reduce the workload of existing resources. · Get 24/7 support. A 9 to 5 security support model no longer works in today’s complex threat landscape. An external provider can perform this function for a fraction of the cost and even offer local on-site support. An internal resource would require two additional shifts, along with the costs and resources that go along with these shifts.
2. Develop better skills and competencies.
Security analysts at managed security companies have more depth, breadth, and experience because they deal with a wide variety of clients and environments.
Recently, we were told by a CISO of a large entertainment company that uses extensive managed security, “It is important to understand that your staff will not be knowledgeable about all security aspects – it is better to outsource these to experts.”.
3. Reducing expenses.
Many security companies have had to drastically scale back due to economic pressures – either through budget cuts, headcount reductions, or in some cases, both. MSS has become increasingly common for security organizations due to fewer resources. Interestingly, most of these companies plan to continue with this model even when times improve.
4. Streamline the process.
A large enterprise accumulates an impressive array of security technologies and processes to generate a tremendous amount of data. Consequently, it’s not surprising that security managers cite sifting through this data as one of the most challenging aspects of gaining a comprehensive understanding of their information security program. Many CISOs find it appealing to have someone else filter through data and present a neat dashboard for them to review.
MSPs historically took on a number of the mundane operational responsibilities of organizations, so the decision criteria were fairly straightforward. When companies say that a service provider offered an adequate level of service at a reasonable cost and had more and better tools, they are satisfied. The complexity of your environment will increase, the threat landscape will evolve, and your business needs will continue to grow, so managed services will have to provide a lot more.
How should you choose a Managed Security Service Provider?
When choosing an MSP, you have many options. How do you determine which is right for you? Conduct due diligence and pay attention to a company’s culture before choosing a service provider. Consider the service provider’s strengths and weaknesses regarding offerings and competencies – select a provider that excels in the area you wish to outsource. A culture analysis is also critical. A relationship’s success depends on many factors, including culture. Talk to some of the provider’s existing customers to get to know them.
Consider the benefits of onshore versus offshore. Offshoring can be very valuable if you have significant experience with the practice. However, you may experience some stumbling blocks early on if you don’t. Offshore models can come with potential compliance regulations, service disruptions, and geopolitical risks.
Clouds are an interesting topic. Cloud service providers have been sceptical about them. Nevertheless, your architecture should extend beyond the present. What is your company’s likelihood of embracing cloud computing shortly? If so, consider telecom providers, investing heavily in this area and typically offering the best choice. SaaS and point services like email and Web filtering are examples of cloud-based services beyond the traditional managed SOC.
Evaluate your need for consulting capabilities. Examine the service provider’s consulting abilities. It will help you integrate the managed services into your environment and shorten the ramp-up time. The client can get more value if the consulting and managed services are coherent and coordinated.
Retain key decision-making responsibilities. An MSP can provide you with the bare minimum, but you still need to understand your environment and what it requires. A messy environment will remain chaotic — outsourcing won’t magically resolve this. Make sure you have suitable governance structures and IT processes in place before you look to outsource parts of your environment. As you build up the relationship, ensure you always retain authority over setting policy and other strategic functions.
NSWIT Support has been drilling its efficiency on the managed service provider since 2012, so small organizations willing to take up the service can connect with us!