Global Managed Services Category - Procurement Market Intelligence Report

  • Published: Dec 2018
  • Pages: 107
  • SKU: IRCMSTR10258-1
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Key findings: Managed services

This managed services procurement research report offers actionable information on the global spend potential, regional spend dynamics, and pricing models. Insights delivered in this report will help purchasers to identify cost-saving opportunities while procuring managed services.

 

In this market intelligence report, the experts predict that the advent of technologies such as knowledge base management and autonomic computers will enhance the service capabilities of managed services. According to the experts, the spend momentum for this market will increase substantially over the next couple of years. Much of this growth can be attributed to the following:

  1. Investments in better IT infrastructure by governments
  2. Demand to reduce IT service downtime
  3. Rising adoption of IT infrastructure by SMEs
  4. High preference for cloud-based services

Category growth is also dependent on factors such as the steady growth of the global storage as a service market, which is one of the key sub-segments of managed services. This market segment is predicted to witness a growth of over 20% in the years to come. The rising demand for hybrid cloud-based storage systems will play a crucial role in influencing the demand for managed services among enterprises.

For more information on the exact year-over-year spend growth rate, download a free report sample. 

Insights delivered

 

Written from the perspective of the buyers and suppliers, this managed services procurement research report offers comprehensive coverage of the factors driving spend across various regions and helps buyers to identify opportunities for cost savings. To help buyers procure managed services at cost-effective rates, an analysis of the pricing outlook and supplier cost structure is also offered in this report.

Insights offered in this managed services sourcing and sourcing and procurement report will help the buyers understand:

  • Global spend potential for a period of 2018-2023
  • Supplier cost breakup
  • US market overview and pricing models
  • Supply chain margins and key cost drivers

 

Analyze the global category spend for managed services

 

The rising adoption of managed services by SMEs will be a key factor resulting in this markets impressive spend growth rate of over 11%. The maturing traditional IT business models that are based on outsourcing will compel IT companies to venture into cloud computing and other lucrative categories. The availability of hybrid cloud solutions is another factor influencing the spend growth rate since they help mitigate security concerns. To access the annual market size data for the global category spend, download a free sample copy.

This managed services procurement research report offers a coverage of:

  • Regional and global spend opportunities
  • Spend dynamics on a global and regional level
  • Category spend and spend growth potential

 

Optimize category spend for managed services

 

Reducing spend is a key concern for enterprises looking to purchase managed services from suppliers across the globe. As a result, buyers must issue RFPs to potential service providers and address the queries of suppliers who express interest in their projects. Promoting a competitive bidding scenario by evaluating suppliers on pre-defined parameters such as compliance of suppliers with regard to roles and responsibilities, utilization of application performance and enterprise management tools, and ability to effectively deploy service models will help reduce excess spend.

This market intelligence report on managed services also offers a coverage of:

  • Cost-saving opportunities
  • Supply chain margins
  • Technology-facilitated procurement metrics
  • Supply market competitiveness and factors influencing buyer power

 

Assess category spend for the US region

 

In the United States, the high growth rate of end-user industries coupled with rising digitization will result in the high demand for managed services. Experts state that this region will witness extreme penetration of cloud-based solutions, owing to their cost-effectiveness. In this region alone, the market segment for cloud-based solutions will grow at a rate of 10%-15%, offering promising growth opportunities to providers of managed services. Service providers in the US are also offering customized services to meet the dynamic requirements of their end-users and are now helping buyers to monitor and maintain secure networks and to migrate data across platforms to establish their brand presence in the US market.

Additional information offered in this managed services sourcing and procurement report will help buyers analyze:

  • Category spend in the US
  • Supplier cost structure in the US
  • Margins of suppliers and category cost drivers

 

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Build strategies for effective supplier selection

 

Evaluating suppliers based on their level of transparency, especially when it comes to pricing, is a crucial factor for selecting the right supplier. Pricing for managed IT services can be extremely granular, and it can be tedious for buyers to monitor their usage since most suppliers provide their own infrastructure. Limited knowledge regarding the configuration, performance, and measurement metrics used by the suppliers for generating the bill will necessitate the need for better transparency.

This managed services sourcing and procurement report identifies the major costs incurred by suppliers and provides additional information on:

  • Key supplier selection criteria
  • Service level agreements and US supplier market ecosystem
  • Total cost of ownership and category risks

 

Devise effective category management strategies for managed services

 

This report states that most category managers are focusing on TCO analysis and ROI realization to better manage their category. The primary category management objective for any procurement officer is to reduce high costs associated with hardware acquisition and software solutions-related IT operations. This can be achieved by making suppliers responsible for hardware acquisition, software licensing, and maintenance of the IT infrastructure. By following this step, buyers will be able to transform their CAPEX into OPEX. In this report, the experts also state that buyers should select a supplier based on their capability to ahere to SLA terms. Following this strategy would help buyers to better manage their category spend.

Key insights offered in this market intelligence report on managed services will help the buyers identify:

  • Category risks and strategies to mitigate them
  • Major supplier and buyer KPIs
  • Threat of new substitues and availability of new suppliers

 

Design strategies based on regional spend data

 

According to the experts, rising investments from end-user industries in APAC due to rapid digitization of their business operations will result in the impressive growth of the market in APAC. Developing economies, especially those in APAC, will witness a high demand for managed services due to high investments in IT by companies in pharmaceutical, retail, and utilities sectors. Last year, IT services spending in India surpassed $2 billion and is predicted to grow at a rate of nearly 14% in the years to come.

To estimate the regional spend potential, this managed services procurement research report considers geographies such as:

  • APAC
  • MEA
  • Europe
  • North America
  • South America

Information on the top managed services suppliers and major risks faced while procuring managed services is offered in this market intelligence report. Download a free sample to access the reports complete scope of coverage.

 

Key Features of Report (2017)

Supply Market Insights
Procurement Best Practices
Cost Saving Opportunities
Pricing Models
Negotiation Strategies
Category Risk Analysis
Key Supplier Analysis
Supplier Capability Matrix

 

Managed Services - Category Spend Analysis

According to analysts, the primary growth contributor to the global market of managed services is the increasing demand for improving the efficiency of business processes among end-user segments such as telecom, energy, and healthcare. Consequently, this has increased the complexities of managing IT infrastructure and created a demand to manage capital expenditure effectively.

 

Managed Services – Procurement Best Practices

Buyers must engage and evaluate suppliers based on pre-defined parameters such as compliance of suppliers with regard to roles and responsibilities, utilization of application performance and enterprise management tools, and their ability to effectively deploy service models. A key strategy adopted by procurement managers in this market space is to provide standard scorecards to evaluate service providers and provide necessary comments to rationalize the given scores.

 

Managed Services - Procurement Challenges

Based on the analysis in this market intelligence report, a major procurement pain point experienced by the buyers is to ensure robust security and service assurance. SpendEdge’s procurement specialists predict that the buyers must look for MSPs that offer a full array of security capabilities including intrusion detection, business continuity, managed firewalls, and disaster recovery.

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PART 01: Executive Summary

PART 02: Market Insights

  • Global category spend
  • Category spend growth
  • Spend segmentation by region
  • Regional spend dynamics
  • Regional influence on global spend
  • Regional spend opportunity for suppliers

PART 03: Category Pricing Insights

  • Pricing outlook
  • Supplier cost structure
  • Outlook for input costs
  • Total cost of ownership analysis
  • Overview of pricing models
  • Comparison of pricing models
  • Supply chain margins
  • Cost drivers impacting pricing
  • Volume drivers impacting pricing

PART 04: Cost-Saving Opportunities

  • Supplier-side levers
  • Buyer-side levers
  • Quantifying cost-saving opportunities
  • Quantifying cost savings by negotiation strategies

PART 05: Best Practices

  • Innovation and success stories
  • Procurement excellence best practices
  • Procurement best practices
  • Sustainability practices

PART 06: Category Ecosystem

  • Market favorability index for suppliers
  • Competitiveness index for suppliers
  • Buyer power
  • Supplier power
  • Threat of new entrants
  • Threat of substitutes
  • Buyer ecosystem
  • Supplier ecosystem

PART 07: Category Management Strategy

  • Category management objectives
  • Supplier and buyer KPIs
  • Outsourcing category management activities
  • Risk management

PART 08: Category Management Enablers

  • Procurement organization
  • Category enablers

PART 08: Category Management Enablers

  • Procurement organization
  • Category enablers

PART 10: Suppliers Under Coverage

  • Overview
  • Supplier positioning
  • Profile: AT&T
  • Profile: HUAWEI
  • Profile: FUJITSU
  • Profile: IBM
  • Profile: ERICSSON
  • Profile: Accenture

PART 11: US Market Insights

  • Category spend in the US
  • Price outlook
  • Supplier cost structure in the US
  • Margins of suppliers in the US
  • Category cost drivers
  • Category volume drivers
  • Overview of best practices in the US
  • Procurement best practices in the US
  • US supply market overview
  • Supplier positioning for the US
  • Regional category risks

PART 12: Category Definition

  • Category hierarchy
  • Category scope
  • Category map

PART 13: Appendix

  • List of abbreviations
  • Key Notes
  • Global category spend (2018-2023)
  • Category spend growth (2018-2023)
  • Regional spend dynamics
  • Regional spend dynamics
  • Comparison of category maturity across regions
  • Regional spend opportunity for suppliers (2018-2023)
  • Category pricing dynamics
  • Supplier cost breakup
  • Input cost dynamics
  • Total cost of ownership model
  • Benefit comparison of pricing models
  • Pricing models comparison matrix
  • Supplier margin analysis
  • Margin analysis across supply chain
  • Cost drivers
  • Volume drivers
  • Cost-saving opportunities: Supply-side levers
  • Cost-saving opportunities: Demand-side levers
  • Cost-saving opportunity matrix
  • Negotiation grid
  • Innovation and success stories
  • Procurement excellence summary: Impact on the category
  • Supplier relationship management metrics
  • Strategic sourcing and category management metrics
  • Technology-facilitated procurement metrics
  • Procurement best practices dashboard
  • Sustainability practices: Impact on the category
  • Sustainability best practices
  • Market environment score
  • Market competitiveness score
  • Buyer power score
  • Supplier power score
  • Ease of market entry score
  • Ease of substitution score
  • Buyer ecosystem: Outlook
  • Supplier ecosystem: Outlook
  • Ecosystem disruption threats
  • Key category management objectives
  • Supplier KPI dashboard: Importance for the category
  • Buyer KPI dashboard: Importance for the category
  • Category management enablers
  • Risk management matrix
  • Category enablers: Procurement model
  • Category enablers: Technology
  • RFx questions
  • Phase I RFI considerations
  • SLA terms
  • Supplier performance benchmarking criteria
  • Supplier operational capability matrix
  • Supplier positioning matrix
  • AT&T Key information dashboard
  • HUAWEI Key information dashboard
  • FUJITSU Key information dashboard
  • IBM Key information dashboard
  • ERICSSON Key information dashboard
  • Accenture Key information dashboard
  • US category spend (2018-2023)
  • Category pricing dynamics
  • Supplier cost breakup
  • Supplier margin analysis
  • Margin analysis across supply chain
  • Cost drivers
  • Volume drivers
  • Procurement excellence summary: Impact on the category
  • Supplier relationship management
  • Strategic sourcing and category management
  • Technology-facilitated procurement
  • Procurement best practices dashboard
  • Supplier operational capability matrix
  • Supplier positioning matrix
  • Risk management matrix
  • Category definition
  • Category nuances
  • Importance of category relative to other categories

Research Framework

SpendEdge presents a detailed picture of the market by way of study, synthesis, and summation of data from multiple sources. The analysts have presented the various facets of the market with a particular focus on identifying the key category influencers. The data thus presented is comprehensive, reliable, and the result of extensive research, both primary and secondary.

INFORMATION SOURCES

Primary research

  • Procurement heads
  • Category managers
  • Sourcing consortium professionals
  • Industry experts and thought leaders
  • Procurement managers
  • Category heads of suppliers
  • Client account heads/managers
  • Client and industry consultants

Secondary research

  • Industry journals and reports
  • Periodicals and new articles
  • Category webinars
  • Internal categiry playbooks
  • Industry and government websites on regulations and compliance
  • Internal databases
  • Industry blogs/thought leader briefings

DATA ANALYSIS

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