India Managed Services Market Spending Expected to Grow at More Than 9% CAGR Over the Next Five Year
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.
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