How Big Is The Market for Managed I.T.?
Growing demand for Cinch I.T. 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. There are a few major factors driving the managed services market. There is an increasing dependence on I.T. assets to boost business productivity and security, as well as a need for specialized managed service providers who offer cloud-based managed services.
The I.T. Outsourcing Statistics 2017/2018 study from Computer Economics finds that companies have increased their budget for outsourcing I.T. to 11.9% of their budget. The Deloitte ‘Global Outsourcing Survey’ report also reflects this trend – currently enterprises outsource 72% of their I.T. functions, but plan to increase it by 31%.
MSPmentor reports that the surge of managed I.T. 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 I.T. staff or department. Small to medium-sized businesses remain underserved though. In fact, the vast majority of small businesses do not employ a full-time I.T. professional.
This is what makes the Cinch I.T. target market so valuable. There are many large and very expensive Managed Service Companies that provide I.T. services to large Fortune 500 companies, while only a handful exist to serve the small and medium-sized businesses (SMB) market. Our technology franchises exist to bridge that gap.
Cinch I.T. Targets an
Despite the amazing growth in the I.T. industry, the industry remains very fragmented. According to CompTIA, there are about 118,000 “independent computer repair” I.T. companies in the United States, and only about 12,000 managed I.T. service providers. The majority of these companies are independent I.T. providers who serve companies that employ between 1 to 10 people. While there is a handful of MSPs that serve large companies, who employ 500+ people, Cinch I.T. franchise owners target clients who employ 10-100 people on average–the most under-served range.
Our technology franchises target these small and medium-sized businesses. We offer fast responses to I.T. challenges; but more importantly, we act as a trusted adviser to our customers, monitoring their critical I.T. 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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