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What MSPs Must Focus On In the Changed Scenario?
The worldwide managed services market stood at about USD 166.8 billion last year. By the year 2024, the market will exhibit a CAGR of 11.5 percent and will be valued at about USD 319.5 billion, says a study report by Mordor Intelligence, a market intelligence and advisory firm. Europe has advanced to be a prominent player in the global managed services sector.
FREMONT, CA: The contemporary market services sector is a far cry from what it used to be several years ago in Europe. Presently, the managed services are among the most pre-eminent sectors among the other fastest-growing and most successful sectors in the region.
In the European region, the UK has the most number of managed service providers, with France, Germany, and the Netherlands being the other prominent contributors. The major sectors with respect to managed service providers are healthcare, retail, public sector, manufacturing, banking, and finance.
However, this varies across different regions. For instance, Germany’s managed services are strong for the automotive and manufacturing sectors. However, the country is yet to reach the top with respect to managed services for the utilities sector. This is just an example of the differences that exist across the European region as far as the managed service providers are concerned. Owing to the prominent differences, a common approach towards the European managed services sector may not be fruitful. Therefore, it is necessary that managed service providers, MSPs operating in the region need to have a region-specific approach towards the European countries.
The steady pace at which the managed services sector in Europe was growing last year extends into this year as well, with more interesting changes. This is a promising scenario as the region is widely perceived as a tradition-focused and conservative landscape on the European continent.
The region is witnessing rampant changes in the market services space. There have been lately many acquisitions and mergers impacting the overall economic growth.
The increase in urgency for end-to-end application hosting and the requirements to enhance and safeguard crucial business applications drive the managed application industry in the region and across the world. What is being considered as the obstructive factor for the sector is the risks involved in the application of data security.
The constant pace at which the industry is growing is expected to continue in the imminent years as well. Therefore, to find success in the European region, the MSPs plying in the region need to be aware of the key drivers of this growth and derive their strategies accordingly.
The MSPs need to be constantly alert and make enterprise data highly secure. As cyber-attacks continue to increase, all MSPs need to employ a security-foremost approach. In the imminent years, MSPs can be seen deploying greater efforts to safeguard the service infrastructure of their clients along with bringing in contingency plans to recover from attacks.
The ongoing and expected increase in mergers with respect to tools utilized by these MSPs has been fuelled by the requirement to have highly integrated solutions all at one place. With mergers, lack of specific tools can be compensated by merging with another MSP who provides the tools or solutions. The current customers are highly in demand and technologically aware, and they are faced with more options as well. Therefore, an MSP service has no other alternative but to look for all solutions under one roof.
Another significant trend for the current MSPs is to recognize the need for customers having a preference for the result-oriented outcome with a predefined standard. This preference is what paves the way for customers turning to outsource to integrated solution providers, as opposed to single solution providers. Here, MSPs have to be flexible concerning the way they manage their services. All MSPs are facing and continue to encounter the need to advance to have the abilities to present consultation services whose outcomes can be measured.
Also, with more tasks getting automated, there is less human involvement in many of the entrepreneurial activities. Any MSP can’t ignore this trend, and will have to implement automation services as a huge component of their portfolio.