Progress Partners with some survey data on the health of MSPs and IT services. In their fourth quarter MSP report, more than 655 IT/MSP contracts were signed in the fourth quarter of 2022, which is up 14% year over year. I went through the slideshow to pull out the data for you.
While global spending on IT and business services declined, managed services’ annual contract value (ACV) advanced by 2% to a record $9.3 billion.
Revenue in the IT-managed services market is projected to reach $1.2 trillion in 2023. The market’s largest segment is IT outsourcing, with a projected market volume of more than $430 billion this year.
Expect revenue to sport a compound annual growth rate (CAGR) of almost 6.9%, resulting in a market volume of $1.6 trillion by 2027.
This is a “big company” index survey, but I wouldn’t be too quick to dismiss it for those in SMB. (And I know my enterprise listeners’ ears perked right up). 14% growth is solid and worth noting, but let’s contrast it with the demands of “high growth” returns. Why do I contrast that? Because vendors will tell you how much the “market” loves managed services.
14% growth is a good market, but not a great one. Let’s just put ourselves in the proper context.