Both IT Services demand and model have changed overnight
Enterprises across the world are migrating their critical workload instances over cloud. Furthermore, IoT, AI and Big Data Analytics demand huge computational power and data storage spaces. Remote working and mobility adds to the strategic deployment of applications as well. Digital transformation, hence is a complex process that needs proper data networking and processing capabilities. Owing to this demand, IT managed services hold tremendous growth potential. It is anticipated to witness a CAGR of approximately 11.27% over the forecast period of (2020 - 2025). IT Managed services reduces cost upto 45% and increases operational efficiency upto 65%.
With changing time, the demand for bundled services has increased among large enterprises. To service, these demands are leading IT Managed services to find new services to add up to their existing portfolio. Most of the managed services are collaborating with specialized service vendors to have the bundled packages ready. From go-to-market assistance to long term operations support, IT managed services are incorporating process automation tools and AI to automate certain parts of their functions.
Elements of Digital Transformation changing IT Services
IT Managed services are growing in complexity owing to Digital transformation initiatives. Hence, client expectations are increasing. IT Managed services have to exercise new delivery norms of services, that are spanned across multiple emerging technology domains. They have to innovate a standardized process to fit and and scale IoT, AI, Multi-Cloud & Data Management capabilities.
Demand of End to End service covering all touch points
IT Managed Services providers are moving towards platform based tools that cover all aspects of IT inclusion in a business process. Starting from technology supply, installations, management and support, every aspect of IT touchpoints are covered within a platform to provide end to end service as a whole.
Implementation of virtualization in every IT operations
It is imperative IT service providers should save costs and resources, and find out innovative solutions for IT operations. To excel in this strategy, IT Service providers are leaning towards API and embedded analytics in their entire integratable IT operations provisions. They are incorporating AI to have an overview of operations, through which they can automate optimization of various IT operations, while not harming integrated service executions. It is not stopping there, all the infrastructure is in stages to be completely virtualized and seen as a whole. Using AI applications, these virtual infrastructures can be operated without any complexity. Data from these overall AI automated management, can bring insights that can lead to operational transformation impacting business strategy.
IT services from operation engagement to strategic engagement
To stay ahead in the market, service providers have to move ahead of transactional services. IT Management services should think about advancement in transition and adoption of newer methods that have proven business outcome. IT Service providers can create space to drive strategic innovation into an organization customer base and service offering, through co-innovation while executing digital transformational overhaul in an organization.
Outcome based services to be a norm
Trend of predefined standards and goals for IT Services vendors, are leading Service providers to evolve their functionalities and operations. Hence, incorporating advanced analytics in their system to achieve the pre-meditated results, is one of the adoptions IT services firms will have to undertake.
Enterprise clients now look towards result-based outcomes with pre-defined or expected standards. Hence IT services firms are finalizing outcomes by consulting with clients and finalizing strategic IT architecture that can meet the consumer needs.
Increased Mergers and Acquisitions
There are multiple new age IT management tools and technologies, that scattered small or mid market firms specialise in. Since, the need of one stop shop model in IT services, various Managed Service Providers are joining hands among each other to consolidate and provide everything-as-a-service model. Larger managed services organizations are buying out specialised IT security control firms etc, and position themselves as a holistic service provider.
It is very clear that IT managed services demand is growing. But what is more apparent is the evolution of technologies and complexities that IT management firms need to be capable of handling without fail. To prepare themselves in short time, they should start looking into specialized IT operations firms with unique capabilities matching the upcoming discussed trends.
SA advises larger firms who need robust IT management services to engage with firms based on what services they have that are aligned to the business value of your organization. Look into consulting capabilities of IT firms who have a clear vision of end-to-end solution implementation. SA specializes in consulting organizations to define strategic criterias and a roadmap of acquiring a series of capabilities that can facilitate a completed hybrid IT operations leading to successful business outcomes.
SA keeps various IT firms under radar, who have specialised expertise to be a part of end to end solutions that can operate and scale the digital engagement ecosystem. We evaluate these firms in terms of their insight and ability to be a strategic partner, and their experience in successful services delivery. We look into their expertise in a range of emerging IT management tools and platforms, and nurture them in their growth of developing specialized IT tools or have deep rooted knowledge on how to implement them in hybrid IT strategy.