The projected outlook for managed services indicates a worldwide growth of 12.7%, reaching a total value of US$472 billion according to findings from a global study commissioned by Cisco and conducted by Canalys.
Key drivers of demand are the increasing need for cybersecurity as well as thetalent gap in cybersecurity and IT. The study also reveals that more than half (56%) of channel partners expect revenue growth from cybersecurity-managed services.
"Today, businesses are integrating more technology into their operations and they expect their IT partners to provide agility, value, and flexible consumption models to efficiently manage their growing and complex technology needs," said Bee Kheng Tay, president, of ASEAN, Cisco.
“Managed services are the force driving the global IT industry's adaptability and growth. Our research underscores the substantial potential for companies selling managed services, opening up diverse avenues for them to thrive in a post-pandemic era,” said Robin Ody, senior analyst at Canalys.
Potential in APAC
Managed services revenue for the Asia Pacific (APAC) region is estimated to grow to up to 14% in 2023. According to the study, Malaysia, Indonesia, and Singapore have huge growth potential for managed service providers for basic monitoring, management, network services, backup, and cybersecurity.