Global Managed Services Market To Reach $297 Bn By 2020

managed-servicesThe market for managed services by the telecom operators to their global customers could well touch the magic figure of $300 billion in next five years. By 2020, the managed services offering by the telcos to their enterprise customers could fetch revenues of $297 and it would grow at a pace of 9.9% CAGR, a recent study by Ovum revealed.

The report says the biggest contributor would be strategic ICT services, Strategic ICT services include business IT and IP applications, compute and hosting, enterprise mobility, managed networks, professional services, and unified communications. They represent the new generation of dedicated IT and IP communications services that telecoms service providers are able to offer under contracts with enterprise customers.

“Telcos have relied on adapting traditional voice and data services to serve increasingly complex enterprise business users, but now have a powerful range of ICT services that have been integrated across the operators’ global networks,” said David Molony, principal analyst in Ovum’s enterprise practice and author of the report.

“Telco revenues from strategic ICT services are growing faster and, according to our calculations, will overtake legacy service revenues in 2018.”

By definition global services means there are prospects for growth worldwide, but regionally the growth areas for telco strategic services are in Latin America (17.8% CAGR), Africa (17.5%), the Middle East (16.4%), and Central Asia (13.0%). The big markets of 2015 – Europe and North America – will grow more slowly, but will still be the largest in 2020.
In addition to growing their service portfolios, more telcos are offering enterprise managed services through dedicated business units or divisions. They are also increasingly challenging (as well as partnering with) systems integrators and IT services providers in the large enterprise sector.  “Telcos have taken more than 14% of the global ICT services market in the last couple of years,” said Molony. “We expect that share to reach more than 18% by 2020.”

The study by Ovum was designed by analyzing over 9,000 managed services contracts between global telecom operators and their enterprise customers.

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