Publication date: 29 Nov 2023
India Managed Services Market Spending Expected to Grow at More Than 9% CAGR Over the Next Five Years, Says IDC
INDIA, 29 November 2023 – The recent IDC Playbook for Tech Sales Leaders: India Trends and Opportunities in Managed Services has unveiled that the managed services market spending in India is anticipated to grow at an impressive compound annual growth rate (CAGR) of over 9% over the next five years. Furthermore, the landscape of managed cloud services is witnessing an extraordinary boom, with projections indicating a CAGR of 25% by the year 2026.
Despite recent headwinds, which include the Russia-Ukraine War, rising wage inflation, supply chain disruptions, inflation, and looming recession fears, there has been a remarkable surge in the need to digitize operations and enhance efficiency, agility, and the speed of IT systems. This, combined with talent shortages and the growing complexity of IT and cloud management, has helped offset the challenges posed by these economic conditions.
"In today's dynamic business environment, the managed services market in India is not merely weathering economic challenges; it's thriving. The robust growth in managed cloud services, coupled with the evolving demands of enterprises, underscores the critical role of innovation, adaptability, and customized solutions,” says Neha Gupta, Senior Research Manager, Software and IT Services market, IDC India. “The future belongs to those who can seamlessly navigate the cloud landscape, leveraging AI technologies and tailoring pricing models to meet the unique needs of their clients," Gupta adds.
The driving force behind this expansion is the escalating demand for hosting infrastructure services as businesses continue to migrate their on-premises applications to cloud environments and service provider-owned data centers. Hosting infrastructure services are also experiencing a surge in demand due to the preference for engaging with managed service providers (MSPs) to efficiently manage and optimize infrastructure and workload performance across various cloud platforms.
Respondents to the report have expressed a strong preference for vendors who can customize solutions, offer innovative pricing models, and exhibit robust industry capabilities. Cloud expertise and stringent security credentials further solidify the reputation of these vendors for delivering tailored solutions.
As enterprises grapple with the complexities of managing cloud operations, IDC anticipates that cloud management platforms (CMP) will take center stage and emerge as key differentiators in the value proposition of IT service providers offering cloud services. The proficiency of vendors in orchestrating and managing multi/hybrid cloud environments plays a pivotal role in the current technological landscape.
Considering these trends, IT vendors are urged to prioritize automation and platform utilization within managed cloud services, coupled with robust resiliency capabilities such as recovery and security. The incorporation of multi-cloud management capabilities that harness the power of AIOps through cognitive and AI technologies is seen as a crucial step forward. Additionally, tailoring pricing structures and models to precisely align with the evolving needs of buyers can provide the flexibility required to navigate the turbulent waters of inflation-induced budget constraints.
The report IDC Playbook for Tech Sales Leaders: India Trends and Opportunities in Managed Services provides a concise snapshot of the current market landscape and also offers insights into the impact of emerging trends, along with valuable guidance for account strategies. This wealth of information can be an indispensable resource for tech sales leaders seeking clarity on client buying criteria and the influence of market dynamics.
For more information about this report, trends, or questions for analysts, please contact Michael de la Cruz at firstname.lastname@example.org or Miguel Carreon at email@example.com. You can also follow IDC India’s Twitter and LinkedIn pages for regular updates on IDC’s research & events.
International Data Corporation (IDC) is the premier global provider of market intelligence, advisory services, and events for the information technology, telecommunications, and consumer technology markets. With more than 1,300 analysts worldwide, IDC offers global, regional, and local expertise on technology, IT benchmarking and sourcing, and industry opportunities and trends in over 110 countries. IDC's analysis and insight helps IT professionals, business executives, and the investment community to make fact-based technology decisions and to achieve their key business objectives. Founded in 1964, IDC is a wholly owned subsidiary of International Data Group (IDG), the world's leading tech media, data, and marketing services company. To learn more about IDC, please visit www.idc.com. Follow IDC on Twitter at @IDC and LinkedIn. Subscribe to the IDC Blog for industry news and insights.