How Big Is The Market for Managed IT?
Growing demand for Cinch IT Franchises
The global market for managed services will grow from $107.17 billion in 2014 to $193.34 billion by 2019, at a Compound Annual Growth Rate (CAGR) of 12.5%, according to Markets and Markets. North America is expected to be the largest MSP in terms of revenues generated. The major factors driving the managed services market include the increasing dependence of organizations on IT assets to boost their business productivity and security, and the need for specialized managed service providers who can offer cloud-based managed services.
The IT Outsourcing Statistics 2017/2018 study from Computer Economics finds that companies have increased their budget for outsourcing IT to 11.9% of their budget. The Deloitte ‘Global Outsourcing Survey’ report also reflects this trend – currently enterprises outsource 72% of their IT functions, but plan to increase it by 31%.
MSPmentor reports that the surge of managed IT services in business is the direct result of the value these services and the range of solutions these services bring to small businesses and large companies that employ an internal IT staff or department. Small to medium-sized businesses remain underserved though. In fact, the vast majority of small business do not employ a full-time IT professional. This is what makes the Cinch IT target market so valuable. There are many large and very expensive Managed Service Companies that provide IT services to large Fortune 500 companies, while only a handful exist to serve the small and medium-sized businesses (SMB) market.
Cinch IT Targets an
Despite the amazing growth in the IT industry, the industry remains very fragmented. According to CompTIA, there are about 118,000 “independent computer repair” IT companies in the United States, and only about 12,000 managed IT service providers. The majority of these companies are independent IT providers who serve companies that employ between 1 to 10 people. While there are a handful of MSP’s that serve large companies, who employ 500+ people, Cinch IT franchise owners target clients who employ 10-100 people on average–the most under-served range.
Cinch IT targets these small and medium-sized businesses. We offer fast responses to IT challenges; but more importantly, we act as a trusted adviser to our customers, monitoring their critical IT systems to proactively address potential issues and eliminate downtime. Our consultants analyze their businesses to recommend technology solutions that will make them more productive and profitable.
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