Global Managed Information Services Market Growth, Share, Size, Trends and Forecast (2025 - 2031)

In this report, the Managed Information Services Market has been segmented by Deployment Mode, Solution, Function, End-User Vertical, and Geography.

Managed Information Services Market, Segmentation by Deployment Mode

The Managed Information Services Market has been segmented by Deployment Mode into On-Premise and Cloud.

On-Premise
The on-premise deployment model remains a vital solution for organizations that prioritize data control and regulatory compliance. Offering complete infrastructure ownership, it is ideal for industries dealing with highly sensitive information, such as finance, healthcare, and government. While its market share has been declining with the rise of cloud solutions, on-premise deployments still account for around 42% of the managed information services market, underscoring its continued relevance in data-intensive sectors.

Cloud
The cloud deployment mode is rapidly gaining traction, thanks to its cost-effectiveness, scalability, and anytime, anywhere accessibility. Businesses are increasingly opting for cloud-based solutions to drive digital transformation and streamline operations. With approximately 58% market share, the cloud segment dominates the managed information services space. Its popularity is bolstered by the adoption of hybrid cloud environments, automatic system updates, and enhanced collaboration capabilities, making it the go-to choice for modern enterprises.

Managed Information Services Market, Segmentation by Solution

The Managed Information Services Market has been segmented by Solution into Managed Networks, Managed Infrastructure, Managed Communication, Managed Security, and Managed Data Center.

Managed Networks
The managed networks segment is integral to maintaining high-performance and secure connectivity across enterprise systems. As organizations increasingly rely on digital infrastructure, demand for services like network monitoring, VPN management, and LAN/WAN optimization is growing. Holding around 24% of the market, managed network services are critical for ensuring uninterrupted communication and reduced network downtime.

Managed Infrastructure
Managed infrastructure services provide businesses with comprehensive support for IT operations, covering servers, storage systems, and virtualization technologies. Representing about 21% of the total market, this segment enables organizations to achieve greater scalability, improve resource utilization, and minimize system disruptions. It's particularly valuable in hybrid environments that require robust, outsourced infrastructure management.

Managed Communication
The managed communication segment enhances enterprise collaboration through fully integrated voice, video, and messaging solutions. As remote and hybrid work become the norm, this segment—making up roughly 17% of the market—helps businesses maintain seamless interactions, foster team productivity, and support customer engagement across multiple platforms.

Managed Security
With cyber threats evolving rapidly, managed security services have emerged as a top priority for enterprises. Covering firewalls, threat detection, and endpoint protection, this segment commands around 26% of the managed services market. It enables businesses to safeguard their systems, ensure data privacy, and meet compliance requirements, making it a cornerstone of modern IT strategies.

Managed Data Center
The managed data center segment plays a vital role in delivering data storage, backup, and disaster recovery services. Comprising about 12% of the market, it ensures high levels of data availability, system reliability, and cost-efficient IT management. As organizations grapple with growing volumes of digital data, managed data center solutions provide the foundational infrastructure for smooth and secure operations.

Managed Information Services Market, Segmentation by Function

The Managed Information Services Market has been segmented by Function into Data Backup & Recovery, Network Monitoring & Security, Human Resource, and System Management.

Data Backup & Recovery
The data backup & recovery function is crucial for protecting organizational data and ensuring swift recovery from unexpected disruptions. Covering services like automated backup scheduling, data archiving, and disaster recovery protocols, this segment holds a market share of around 29%. With rising data vulnerability due to cyber incidents and system failures, businesses are investing heavily in reliable backup and recovery solutions to ensure data continuity.

Network Monitoring & Security
Network monitoring & security plays a critical role in maintaining a safe and efficient IT environment. Representing nearly 34% of the function-based segmentation, it focuses on real-time network surveillance, detecting anomalies, and deploying measures to prevent breaches. As enterprises face escalating cybersecurity challenges, demand for these services continues to rise, emphasizing the need for robust, proactive defense systems.

Human Resource
The human resource function in managed services simplifies complex administrative tasks such as payroll management, employee data handling, and benefits tracking. With around 18% market share, this segment allows organizations to streamline HR processes and improve workforce management. The increasing preference for cloud-based HR platforms and outsourced talent solutions is accelerating its growth.

System Management
System management ensures the smooth operation of business IT systems through services like software patching, resource monitoring, and performance optimization. This segment accounts for about 19% of the market and helps companies enhance IT reliability and reduce downtime. As enterprises adopt more digital solutions, efficient system management becomes essential to meet performance expectations.

Managed Information Services Market, Segmentation by End-User Vertical

The Managed Information Services Market has been segmented by End-User Vertical into Telecommunication & IT, BFSI, and Retail.

Telecommunication & IT
The telecommunication & IT industry leads the managed information services market with a strong 41% share. These organizations depend on robust network infrastructure, real-time system management, and high-availability solutions to meet escalating user demands. As data consumption and digital services grow exponentially, managed services are critical to delivering stable, secure, and scalable operations.

BFSI
In the BFSI vertical, comprising about 33% of the market, managed information services are vital for managing sensitive financial data, ensuring regulatory compliance, and preventing security breaches. As digital transactions increase, financial institutions rely on these services to maintain system reliability and customer trust through proactive monitoring and secure data environments.

Retail
The retail segment, with a market share of around 26%, is leveraging managed services to enhance both operational efficiency and customer engagement. From managing POS systems and supply chains to delivering personalized shopping experiences online, managed IT solutions are helping retailers navigate the shift toward digitally integrated, omnichannel business models.

Managed Information Services Market, Segmentation by Geography

In this report, the Managed Information Services Market has been segmented by Geography into five regions; North America, Europe, Asia Pacific, Middle East and Africa, and Latin America.

Managed Information Services Market Share (%), by Geographical Region

North America
North America dominates the global managed information services market with a robust 37% share. The region benefits from mature digital ecosystems, widespread cloud integration, and a strong focus on data security. With the U.S. and Canada leading innovation in enterprise IT, businesses increasingly rely on managed services to optimize infrastructure and support digital transformation initiatives.

Europe
Europe represents a significant 26% of the market, driven by a focus on data compliance, especially under regulations like the GDPR. Organizations across finance, telecom, and manufacturing sectors are turning to managed services for secure, efficient, and compliant IT operations. Key markets such as Germany, the UK, and France are spearheading regional adoption.

Asia Pacific
The Asia Pacific region is emerging as the fastest-growing geography in this space, holding about 21% of the market. The region’s explosive growth is fueled by increasing cloud penetration, rapid urbanization, and government-led digital initiatives. Countries like India and China are becoming hotspots for managed service expansion due to their large-scale enterprise and SME adoption.

Middle East and Africa
The Middle East and Africa region, with a 9% share, is steadily expanding its managed services footprint. Growing investments in technology infrastructure and a rising awareness of cybersecurity threats are encouraging businesses to seek outsourced IT support. Nations such as Saudi Arabia and the UAE are leading in digital innovation and adoption.

Latin America
With a 7% market share, Latin America is gradually embracing managed information services to streamline IT operations. Cost efficiency, enhanced data protection, and improved IT scalability are some of the key drivers. Brazil and Mexico are central to this growth, as businesses modernize their IT frameworks in response to increased digital demand.

This report provides an in depth analysis of various factors that impact the dynamics of Global Managed Information Services Market. These factors include; Market Drivers, Restraints and Opportunities Analysis.

Drivers, Restraints and Opportunity Analysis

Drivers:

• Digital Transformation
• Cloud Adoption
• Cybersecurity Threats

• Remote Workforce Expansion - Remote workforce expansion has become a significant driver reshaping the dynamics of the global managed information services market. The shift towards remote work accelerated dramatically due to the COVID-19 pandemic, prompting organizations worldwide to adopt and scale remote work capabilities rapidly. This transition necessitated robust managed information services to ensure secure access to corporate networks, reliable communication tools, and efficient collaboration platforms. As businesses continue to embrace hybrid work models post-pandemic, the demand for managed services that support remote workforce productivity, cybersecurity, and seamless connectivity is expected to remain strong.

  Managed information services providers are focusing on offering scalable solutions that cater to the unique needs of remote workforces. This includes managed VPNs (Virtual Private Networks) for secure access to corporate resources, cloud-based collaboration tools for enhanced communication and project management, and endpoint security solutions to protect remote devices from cyber threats. Moreover, the emphasis on user experience and support services has grown, with managed service providers offering proactive monitoring, troubleshooting, and user training to optimize remote work environments and ensure operational continuity.

  The expansion of remote workforces presents opportunities for innovation and growth within the managed information services market. Companies are investing in technologies such as virtual desktop infrastructure (VDI), zero-trust security frameworks, and AI-driven analytics to enhance remote workforce management and productivity. Additionally, the trend towards flexible work arrangements has spurred demand for managed services that enable seamless integration of personal and professional devices, ensuring compliance with corporate policies and regulatory requirements. As businesses navigate the evolving landscape of remote work, managed information services will play a crucial role in supporting organizational resilience, agility, and long-term sustainability.

Restraints:

• Initial Cost Barriers
• Integration Challenges

• Skills Shortage - The skills shortage represents a significant challenge impacting the global managed information services market, particularly as organizations increasingly rely on advanced technologies and specialized expertise to manage and secure their IT environments. This shortage encompasses a broad range of technical skills, including cybersecurity, cloud computing, data analytics, and IT infrastructure management. As demand for managed information services continues to grow, fueled by digital transformation initiatives and evolving cybersecurity threats, the gap between supply and demand for skilled professionals has widened.

  One of the key factors contributing to the skills shortage is the rapid pace of technological innovation, which continuously evolves and necessitates up-to-date knowledge and expertise. Organizations often struggle to find qualified professionals with the necessary skills and experience to effectively deploy, manage, and optimize complex IT systems and services. This challenge is exacerbated by the competitive landscape, as businesses compete for a limited pool of skilled talent capable of addressing diverse IT challenges and supporting strategic business objectives.

  Managed information services providers are actively addressing the skills shortage through various strategies, including talent development initiatives, partnerships with educational institutions, and upskilling programs for existing staff. By investing in continuous training and certification programs, service providers aim to equip professionals with the latest industry knowledge and technical competencies required to meet client demands and deliver high-quality managed services. Additionally, leveraging automation, AI, and machine learning technologies helps mitigate the skills gap by augmenting human capabilities, improving operational efficiency, and reducing reliance on manual processes.

Opportunities:

• IoT Expansion
• AI and Machine Learning

• Hybrid Cloud Solutions - Hybrid cloud solutions have emerged as a strategic approach for organizations seeking to optimize their IT infrastructure by integrating public and private cloud environments. This hybrid model allows businesses to leverage the benefits of both cloud deployment models while addressing specific requirements related to security, compliance, and performance. Hybrid cloud solutions enable seamless workload portability, allowing applications and data to be dynamically moved between public and private clouds based on workload demands, regulatory requirements, and cost considerations.

  One of the primary drivers behind the adoption of hybrid cloud solutions is flexibility. Organizations can maintain sensitive data and critical workloads on private clouds to meet strict compliance and security requirements, while leveraging the scalability and cost-effectiveness of public clouds for less sensitive applications or fluctuating workloads. This flexibility also supports business continuity and disaster recovery strategies by ensuring redundancy and resilience across multiple cloud environments. As businesses navigate digital transformation initiatives and seek to modernize their IT infrastructure, hybrid cloud solutions offer a scalable and agile platform to support innovation and growth.

  Managed information services providers play a crucial role in facilitating the adoption and management of hybrid cloud environments. These providers offer expertise in cloud architecture design, migration strategies, and ongoing management and optimization of hybrid cloud deployments. By partnering with managed service providers, organizations can access specialized skills and resources necessary to navigate the complexities of hybrid cloud integration, ensure seamless interoperability between cloud environments, and maximize the benefits of their cloud investments.

Key players in Global Managed Information Services Market include:

• Fujitsu Ltd
• Cisco Systems Inc.
• IBM Corporation
• Hewlett-Packard Enterprise
• Microsoft Corporation
• Dell Technologies Inc.
• Nokia Solutions and Networks
• Accenture PLC
• Rackspace Inc.
• Tata Consultancy Services Limited
• Wipro Ltd
• Deutsche Telekom AG

In this report, the profile of each market player provides following information:

• Company Overview and Product Portfolio
• Key Developments
• Financial Overview
• Strategies
• Company SWOT Analysis