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Managed services market in India to grow at 9% CAGR by 2028 – IDC

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According to a comprehensive analysis conducted by IDC, India’s managed services market is showing a promising trajectory, forecasting a solid annual growth rate (CAGR) exceeding 9 percent in the next five years. Particularly noteworthy is the projected extraordinary surge in the managed cloud services sector, which is anticipated to witness a staggering CAGR of 25% by 2026.

Despite prevailing economic challenges such as the Russia-Ukraine conflict, escalating wage inflation, supply chain disruptions, and looming recession concerns, the report emphasizes a remarkable surge in the urgency to digitize operations. This drive is propelled by the necessity to enhance the efficiency, agility, and speed of IT systems. Strikingly, this surge has effectively counterbalanced the challenges posed by the economic condition, driven in part by talent shortages and the growing complexity of IT and cloud management.

Neha Gupta, Senior Research Manager at IDC India’s Software and IT Services market, underlines, “The managed services market in India is not just weathering economic challenges; it’s thriving. The exponential growth in managed cloud services, in tandem with evolving enterprise demands, underscores the pivotal role of innovation, adaptability, and tailored solutions.”

The driving force behind this expansion is the escalating demand for hosting infrastructure services, with businesses increasingly migrating on-premises applications to cloud environments and service provider-owned data centers. Managed service providers (MSPs) are sought after for efficiently managing and optimizing infrastructure and workload performance across diverse cloud platforms.

As per the report, there is a strong preference among respondents for vendors offering customized solutions, innovative pricing models, and robust industry capabilities. Cloud expertise and stringent credentials further solidify vendors’ reputations for delivering tailored solutions.

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