TRENDS IN MANAGED SERVICES IN 2025
Managed IT services have witnessed accelerated growth in the last few years. With numerous advantages to offer such as reducing downtime redundancy or providing customized value-added services like application testing, customized cloud-based services, and IT consulting, the managed services sector is currently growing at a CAGR of 13.6%. And with the continued growth of cloud and other digital transformations, and many organizations’ pressing needs for greater cost efficiencies, managed service providers have an even greater role to play. As we begin a new year, it is important to take a look at the key trends that will be prevalent in the managed IT services sector in 2025:
Managed Cloud Services Trends
Cloud has been around for many years now, but the demand for flexibility, scalability and remote access has accelerated, and cloud has now become integral to any organization’s digital transformation. As cloud complexity grows, the best choices among managed cloud services providers will have strong offerings in data security, integrations, and hybrid workflows, as well as prompt customer service.
Most enterprises now use multiple cloud service providers to build their infrastructure. Managed service providers will play a key role in optimizing the hybrid or multi-cloud environments that a company might deploy. They’ll be expected to make data flows safer, and simpler, and optimize costs for the users while still offering desired customizations.
As organization footprints expand, so do cloud-connected touch points. IoT has already become a key part of business IT infrastructure across industries, and as the number of devices increases, there will be a greater need for managed IT services for the IoT systems. Estimated to be around 13.2 billion devices currently, it is expected that the IoT ecosystem will go past 34.7 connected devices by 2028. The service providers will be expected to streamline these networks, and ensure that they operate without any downtime or security vulnerabilities.
Managed Security Services Trends
With cyberthreats becoming more pronounced and sophisticated than ever, the conventional security products are going to be of little use for enterprises. Thus, going forward, the enterprises all over the world are going to focus on advanced cybersecurity services managed by expert providers who can offer holistic solutions that not only integrate strong response mechanisms, but focus on continuous threat monitoring and predictive threat intelligence for the modern business enterprises.
In today’s digital landscape, every enterprise and every device is vulnerable, and cyber attacks are not an exception, but the norm. In such a scenario, there is going to be a greater demand for Zero Trust security solutions. Going beyond the passwords, and multi-factor authentication, Zero Trust mechanisms that emphasize on continuous verification and need-based access control for all users, are going to become the standard for managed IT services in the year ahead.
As the digital landscape continues to evolve, businesses will need to adapt to the dynamic regulatory environment, ensuring their data management practices align with the latest standards. Proactive measures, such as regular audits and risk assessments, will be integral to maintaining compliance in this ever-changing landscape. Managed services providers will play a crucial role in assisting organizations to navigate complex data protection laws, offering tailored solutions to meet specific industry requirements. The increasing emphasis on transparency will drive the demand for technologies that provide visibility into data handling processes, fostering a culture of accountability within organizations. In the face of emerging cyber threats, managed IT solutions will also prioritize robust cybersecurity measures to safeguard sensitive information and uphold the trust of clients and customers.
The Integration of AI in Managed Services
In 2025, we will see unprecedented integration of AI and ML in the managed IT services sector. These will not only improve the speed of service delivery, but also the efficiency and impact. There is a rapid surge in data generation, and AI/ML tools will be the key enables when it comes to data-driven decision making.
Not only will these technologies automate routine tasks and make processes more accurate, but they will also boost cybersecurity and customization of workflows. AI and ML can proactively monitor all digital assets of an enterprise and identify vulnerabilities before the hackers exploit them. This kind of predictive monitoring and risk mitigation will make sure AI/ML-centric managed service providers continue enjoying an edge in 2025.
Looking AHEAD
There is no doubt that the managed IT services sector is set to become more exciting, qualitative, and competitive. With AI/ML integrations, the efficiency and customization of solutions will increase tremendously, and more companies will shift to cloud platforms that offer advanced, holistic Zero Trust security coverage. Overall, 2025 is set to be a year of growth and innovation for global managed IT services companies!
About the author
Praveen Grover
Vice President and Managing Director, AHEAD India
Praveen is a senior executive with over 20 years of experience in enterprise technology and best shoring, with expertise in establishing India shared services centers to achieve strategic cost optimization and improve customer experience.