Managed Service Provider (MSP) services represent a huge market share which is growing constantly. Globally, the market size of managed services was valued at USD 239.71 billion & it is believed to expand at a compound annual growth rate of 13.4% from 2020 to 2030. The staggering and unprecedented Covid-19 pandemic outbreak impacted the MSP (Managed Service Provider) market, witnessing negative demand across all countries. According to our analysis, the global market evinced a growth rate of 9.8% in 2020 which is comparatively low to the average year-on-year growth during 2017- 2019. The market is forecasted to grow from USD 243.33 billion in 2021 to USD 557.10 billion in 2028 at a CAGR of 12.6% in the period 2021-2028.
Based on the SIA MSP Global Landscape & Differentiators report 2020 it is discovered that MSP programs generated $ 151 billion in spend under management in 2019, accompanied by 54% of new clients obtaining MSP services for the first time. Be it a global giant or a thriving organization, the crucial need is to access flexible talent early more than ever. The report also stated that MSPs) are being adopted at each spend level as 39% of individual programs managed spend of less than $ 1 million. The market witnessed fresh players joining in to fulfil the rising needs and core benefits of MSP: visibility, control, cost reduction, and compliance devoid of complexity or high-cost customized programs.
Earlier MSP solutions were considered by only the organizations with the most talent spending. Current evolution of the Staffing Industry where things are changing at a fast pace. The digitization led to increased availability of MSPs (Managed Service Provider) to access more business outside talent expertise. Thousands of contingent workers are scattered around the globe; the MSPs are extra support for your business to engage and manage the temporary workforce, no matter where they are located. It is not restrained as a rigid tool for engaging contingent talent on a huge scale but is known as a versatile solution that holds up all work areas of the contingent workforce management for numerous businesses. Managed service providers help to boost business as they improve operational efficiency and lower operating expenses with more focus on core competencies. It ensures optimal resource allocation and utilization, and afterwards helps in augmentation of complete profit and improves operational efficiency.
MSP’s scalable & flexible model helps businesses to easily respond to technological advances that help to drive the market’s growth over the predicted period. The Services Involved are outsourcing management functions for advanced business operations to a third party. Ensures to improve the operational efficiency of the business by cutting down its operating expenses. Cloud-based technology & its proliferation appearance has led to managed service. Digitization played a vital role in the expansion of MSP offerings. The introduction of the plug-and-play approach diminishing the months of complex customization allowed by agile technology has opened the door to an efficient & quicker generation of multi-utility MSP products. The amalgamation of changing attitudes & technology has initiated a real shift in the variety of products launching in the market. The potential buyers in the MSP market are equipped with elevated knowledge at all levels of spending which is encouraging the providers to think out of the box about the services they offer. Buyers are scouring for talent programs that offer both – high-touch experiences & high-tech solutions for their people & talent communities.
The new MSP solution must be an excellent combination of the latest technologies & strong talent expertise with a prominent focus on people’s wants constantly. The new market era accelerated a desire to put up things differently. The market has exploded with a growing demand for flexible talent and has turned many leaders towards a contingent workforce & gig economy to accommodate the right skills at the right time. Therefore, it is most important to associate with the right partner to access the significant category of talent. MSP plays a vital role in the staffing industry, it is essential to meet the expectations of businesses with all features like Speed, agility, competency & technology.
The staffing industry is witnessing the evolution of MSP more rapidly now than ever before. Today clients are searching for providers who can break through the ice of traditional and obsolete features of MSP & think beyond the ordinary solutions of engaging with the external workforce soon.