The Managed Service Provider (MSP) market is flourishing, logging a robust growth rate of 11 to 16 percent in 2014 to reach US$85-90 billion. According to research recently published by Everest Group—a consulting and research firm focused on strategic IT, business services, and sourcing—the current market size, in terms of Net Fee Income (NFI), is approximately US$1.5 billion.
Everest Group also reports that fundamental changes are altering the solution dynamics of the global MSP market. For example, service providers are tapping a wider scope of talent, with the management of Statement of Work (SOW) consultants tripling. Moreover, offshoring is growing rapidly, multi-country and multi-continent engagements are accelerating and direct sourcing is on the rise.
“MSP buyers have already picked the relatively low hanging fruits, and now they are are looking for additional strategic gains from their MSP programs,” adds Rajesh Ranjan, partner at Everest. “This, in turn, has provided an opportunity for service providers to differentiate themselves by bringing in innovative solutions and adopting best practices from allied industries in the broader Business Process Outsourcing area, including Recruitment Process Outsourcing, Human Resource Outsourcing, and Procurement Outsourcing.”
These findings and more are discussed in more detail in “Managed Service Provider (MSP) – Annual Report 2015: Moving Beyond the Horizon.”
This research provides comprehensive coverage of the MSP market and analyzes it across various dimensions such as market overview, key business drivers, and shifting market dynamics across buyer adoption trends, solution & transaction trends, and service provider landscape.
Other Key Findings
As the MSP market is flourishing into a big-dollar space, three categories of service providers have clearly emerged: staffing-legacy MSP, pure-play MSP, and new providers from a variety of backgrounds.
High-resolution graphics illustrating the report’s key takeaways may be included in news coverage, with attribution to Everest Group. Graphics include: