by The global Managed Application Services Market is estimated to be valued at US$ 5.41 Bn in 2023 and is expected to exhibit a CAGR of 21% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
Managed application services help organizations focus on their core business competencies by outsourcing the management of business-critical applications. These services offer improved reliability, scalability, and cost savings to organizations.
Market key trends:
The growing adoption of cloud-based managed application services is one of the key trends being witnessed in the market. Cloud-based managed application services provide businesses flexibility, scalability, automation, and pay-as-you-go pricing model. They enable enterprises to focus on their core business activities while external service providers take care of application management, updates, and optimizations in the cloud environment. This improves overall operational efficiency and reduces IT costs for organizations.
SWOT Analysis
Strength: Managed Application Services help organizations focus on their core business functions by outsourcing application management activities to experienced service providers. It provides scalability and cost savings.
Weakness: Vendor lock-in and lack of control on applications are major weaknesses. Transition and migration challenges during vendor change are other concerns.
Opportunity: Growing need for optimized IT infrastructure and focus on core business functions present significant growth opportunities. Increasing demand for application modernization and migration to cloud also opens up new avenues.
Threats: Data security challenges and vulnerabilities threaten business continuity. Economic slowdowns impact IT budgets and managed services spending.
Key Takeaways
The global Managed Application Services Market Share is expected to witness high growth, exhibiting a CAGR of 21.% over the forecast period, due to increasing need for optimization of IT infrastructure and maximizing returns on IT investments.
North America is expected to dominate the global market, owing to the large presence of managed application services providers and early adoption of cloud technologies across industries. Asia Pacific is poised to be the fastest growing region, supported by rapid digitalization, outsourcing industry growth and global service delivery shifts to emerging Asia Pacific economies.
Key players operating in the Managed Application Services include Fujitsu Limited, Mindtree Limited, IBM Corporation, Wipro Limited, Unisys Corporation, CenturyLink Inc., Virtustream Inc. and HCL Technologies Limited. Major players are focusing on partnerships, M&A and innovations to consolidate their market presence. For instance, in 2021, Wipro partnered with Google Cloud to develop applications on Google Cloud Platform and migrating customers’ mission-critical workloads and data centers to Google Cloud infrastructure globally.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
