Corporate and government spending on technology services will surpass spending on telecommunication services for the first time, creating a significant opportunity for MSPs and other technology service providers to increase revenue, profits, and customers. Managed services account for $500 billion of the $4.7 trillion global tech and telco spending, with 82% of end-user customers outsourcing some or all of their IT. MSPs represent about one-third of the IT services market, and there is an opportunity for them to adjust their models and offer the services and support needed to succeed in the evolving hybrid cloud computing environment. This is from a report from Jay McBain of Canalys.
A PwC report based on a survey of over 2,000 business leaders finds that high-performing organizations are 4.2 times more likely to employ MSPs for strategic advantage. At the same time, those using MSPs for innovation and faster time-to-market are 1.6 and 2.4 times more likely to succeed. The report notes that MSPs have evolved to blur the lines between managed services, management consulting, and technology solutions. MSPs must add business value to stay relevant as AI and automation become more prevalent.
Why do we care?
Validation that this is a market with opportunity. Work must be done, notably if your offerings still need the management consulting and technology solutions portion. I often talk about the productivity layer – this is why. You had better be investing.