Managed information technology (IT) services have seen rapid growth over the last few years. With multiple benefits like reducing downtime redundancies, providing customized value added services like application testing, customized cloud-based services and IT consulting etc., it is currently growing at a compound annual growth rate (CAGR) of 13.6%. Enterprises around the world are now taking advantage of cloud platforms and this is where managed service providers have an even bigger role to play. They help enterprises as well as small and medium enterprises (SMEs) achieve greater cost efficiencies, and simplify their digital transformation. As we start a new year, it is important to take a look at the key trends that will prevail in the managed IT services sector in 2024.
The cloud has been in existence for many years, but the demand for flexibility, scalability and remote access has increased in recent years, and the cloud has now become an integral part of any organization’s digital transformation. That’s why managed cloud solutions are going to be one of the top trends in 2024. However, when choosing your managed cloud service providers, you should pay attention to what they offer as well as data security, integration, and hybrid workflows. The promptness of their customer service.
With cyber threats becoming more obvious and sophisticated than ever before, traditional security products will be of little use to enterprises. Thus, moving forward, enterprises around the world are going to focus on advanced cyber security services managed by expert providers who can provide holistic solutions that integrate not only robust response mechanisms, but also Focuses on continuous threat monitoring and predictive threat intelligence.
In 2024, we will see unprecedented integration of Artificial Intelligence (AI) and Machine Learning (ML) in the managed IT services sector. These will not only improve the speed of service delivery, but also improve efficiency and effectiveness. Data generation is increasing rapidly, and AI/ML tools will be key enablers when it comes to data-driven decision making.
These technologies will not only automate routine tasks and make processes more accurate, but they will also boost cybersecurity and optimization of workflows. AI and ML can proactively monitor all digital assets of an enterprise and identify vulnerabilities before hackers can exploit them. This type of predictive monitoring and risk mitigation will give AI/ML-centric managed service providers an edge in 2024.
The Internet of Things (IoT) has already become a critical part of business IT infrastructure across industries, and as the number of devices grows, there will be a greater need for managed IT services for IoT systems. Currently estimated to be around 13.2 billion devices, the IoT ecosystem is expected to grow to 34.7 billion connected devices by 2028. Service providers will be expected to streamline these networks, and ensure that they operate without any downtime or security vulnerabilities.
Most enterprises now use multiple cloud service providers to build their infrastructure. Managed service providers are going to play a more visible role in optimizing the hybrid or multi-cloud environments that a company may deploy. They will be expected to secure and simplify data flows and optimize costs for users while offering the desired customization.
In today’s digital landscape, every enterprise and device is vulnerable, and cyber attacks are no exception, but the norm. In such a scenario, zero-trust security solutions are going to be in greater demand.
Going beyond passwords and multi-factor authentication, zero-trust mechanisms that emphasize continuous verification and needs-based access controls for all users are going to become the standard for managed IT services in the coming year.
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 changing landscape. Managed service providers will play a key role in helping organizations navigate complex data protection laws, offering tailored solutions to meet specific industry needs. The increasing emphasis on transparency will drive demand for technologies that provide visibility into data management processes, fostering a culture of accountability within organizations. In the face of emerging cyber threats, managed IT solutions will also prioritize strong cybersecurity measures to protect sensitive information and maintain customer and client trust.
As we all navigate into 2024, there is no doubt that the managed IT services sector is set to become more exciting, qualitative and competitive. With AI/ML integration, the efficiency and customization of solutions will increase tremendously, and more companies will shift to cloud platforms that provide advanced, holistic zero-trust security coverage. Overall, 2024 is going to be a year of growth and innovation for global managed IT services companies.
This article is written by Praveen Grover, Vice President and Managing Director, AHEAD, India.
