The content of this report will be updated with the latest scenarios based on the global COVID-19 Pandemic
The managed application services market was valued at USD 3.08 billion in 2019, at a CAGR of 18% over the forecast period (2020 - 2025). The rise in demand for end-to-end application hosting services will increase the demand in the forecast period.
- The managed application services allow the organisation to outsource certain aspects of their IT requirements to a third-party service provider. The companies can reduce costs, boost productivity, and enhance application performance without spending time on implementation, maintenance, and upgradation of their IT related application.
- BMC’s Managed Applications Service is a standardized offering that provides application administration and support for specific customizations and integrations, as well as the day-to-day operational management. A BMC service’s primary goal is to provide with a stable and reliable solution, allowing us to free up skilled resources, focus on innovation, deliver strategic IT projects, and ultimately achieve business objectives.
- The increase in the adoption of smartphone devices and the implementation of the IoT services in the organisation will drive the market in the forecast period. However, the lack of trust in the third-party application will increase the concern on the security of the data over the application.
Scope of the Report
Managed application services allow outsourcing proficient IT professional methodologies that provide services like, service management, application support, data security, and enhance essential applications of an organization; that is either deployed on cloud or on-premises.
Key Market Trends
Application Security Expected to Hold a Significant Share in the Market
- Due to the increase in the use of applications for the IT services in various end-user verticals, there is a rise in concern for the security of the data over the applications. Security products and managed application services enable the customers to connect, secure data and operate their network consistently within and across the data center, and on the cloud network.
- For instance, IBM operates the Service Enablement Infrastructure under policies and procedures that are designed to provide physical and logical/IT security to IBM Services for Managed Applications infrastructure, facilities, and systems. The IBM Data Security and Privacy Principles document defines the technical and organizational measures applied to IBM Cloud Services inclusive of IBM Services for Managed Applications.
- The increase in cyber attacks at various verticals is driving the market for the managed application services in the forecast period for more secure data delivery and data storage over the applications in an organisation.
Asia-Pacific to Witness the Highest Growth
- Asia-Pacific is expected to register a high growth rate, as it experienced the highest demand for managed application services owing to the rise in the complexity of application infrastructure.
- Asia-Pacific accounts to hold the highest market growth due to the dominating source of IT and IT-enabled application services in various countries such as China, Japan, and India. According to IBEF, the Indian IT and IT-enabled services industry accounted for over 55% of the global services sourcing businesses in 2018.
- Most customers in this region prefer managed service application security that has local security operations centers, due to the requirements of data sovereignty and other security compliance regulations released by the governments which will drive the market in the forecast period.
The competition within the market is high among the major players in the market without any dominating player. The competition is based on the best features provided by the organization on the best quality and services at the lowest price. Some of the major players in the market are IBM Corporation, Fujitsu Ltd., HCL Technologies Limited, WIPRO Group, Unisys Corporation, BMC Software, Inc., CenturyLink, Inc., VMware, Inc., and others. Some of the recent trends in the market are as follows:
- Jan 2019 - Fujitsu announced that it had entered a global systems integrator partnership with Microsoft. Three months later (March 2019), it attained the status of a global Microsoft Azure Expert Managed Services Provider (MSP).
Jan 2019 - IBM Services signed a USD 540 million multi-year managed services agreement with Nordea Bank, a financial services company based in Sweden. Nordea may outsource its IBM Z operations to the company. The agreement reportedly outsources a majority of IBM Z infrastructure services in five countries, where Nordea operates. The deals also allow Nordea to have continued access to IBM’s latest technology advancements, including the cognitive services while maintaining a sustainable IBM Z organization at the same time.
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