Managed services refer to outsourced IT services that are delivered and managed by a third-party provider, allowing businesses to focus on their core activities while benefiting from expert IT support.
The addressable market for managed services includes companies of all sizes, from small businesses to large enterprises, across various industries such as healthcare, finance, manufacturing, retail, and more. According to a report by MarketsandMarkets, the global managed services market size is expected to grow from $223.0 billion in 2020 to $329.1 billion by 2025, at a Compound Annual Growth Rate (CAGR) of 8.1% during the forecast period.
There are several public-traded companies that generate significant revenues from managed services in IT. Here are some examples:
1. Accenture Plc (ACN): Accenture is a global professional services company that provides a range of IT services, including managed services. In 2021, the company reported net revenues of $47.1 billion, with over 60% of its revenues coming from its managed services offerings.
2. International Business Machines Corporation (IBM): IBM is a multinational technology company that provides IT services, including managed services. In 2021, the company reported total revenues of $74.3 billion, with over 35% of its revenues coming from its managed services offerings.
3. DXC Technology Company (DXC): DXC is a global IT services company that provides a range of services, including managed services. In 2021, the company reported revenues of $15.9 billion, with over 45% of its revenues coming from its managed services offerings.
4. Atos SE (ATO): Atos is a global IT services company that provides a range of services, including managed services. In 2020, the company reported revenues of €11.3 billion, with over 45% of its revenues coming from its managed services offerings.
5. Wipro Limited (WIT): Wipro is an Indian IT services company that provides a range of services, including managed services. In 2021, the company reported revenues of $8.7 billion, with over 35% of its revenues coming from its managed services offerings.
These companies are just a few examples of public-traded companies that generate significant revenues from managed services in IT. There are many other companies in the industry, and the competitive landscape is constantly evolving.
There are also many MSPs focusing on serving local business, from managed services providers in Phoenix Arizona to MSPs in Huston Texas.