The information technology service management market is worth USD 5,916. 25 Million in 2021 and is expected to reach USD 6,674. 43 Million by 2027 at a 2.2% CAGR during the forecast period 2022-2027.
New York, June 07, 2022 (GLOBE NEWSWIRE) – Reportlinker.com announced the release of the report “Information Technology Services Management Market – Growth, Trends, Impact of COVID -19, and Forecasts (2022 – 2027) ” – https: //www.reportlinker.com/p06283194/?utm_source=GNW
Key Highlights
Information Technology Service Management, hereinafter referred to as (ITSM), refers to all IT -related activities that include the creation, delivery, support, and management of custom solutions undertaken to achieve the goal of business of IT organizations.
Further, as an end-to-end service, ITSM is not limited to designing and delivering appropriate IT Systems, applications, or resources; in fact, ITSM is primarily focused on adopting a particular process strategy in a company or a project. The ultimate goal of ITSM is always set up individually with regard to the unique needs and values of the customers. Additionally, ITSM clearly defines the roles and permissions of the people involved in the project, partners, and third-party providers of services, products, and new technologies.
IT organizations tend to focus more on managing IT services and applications for their short -term and long -term strategic goals. ITSM offers many advantages such as cost reduction, automation of recurring tasks, and data gathering in one place, among others, which have a strong impact on the overall performance of the organization, which helps them achieve their short -term and long -term strategic goals. Therefore, with the emerging dynamics of the IT industry, the ITSM market is expected to witness abundant growth in the estimated time.
While ITSM tools provide great benefits, specific challenges, such as implementation, reliability concerns, and lack of quality standards in service level agreements (SLAs), is expected to hinder the growth of the market studied during the forecast period. The process of acquiring an ITSM tool, primarily for managing critical IT services, involves the belief that the provider’s business will endure and the relevance to them. In case of any provider failure, businesses that rely on them will be greatly affected and are expected to find a replacement for the tool. This, in turn, is expected to disrupt their process and, ultimately, their efficiency.
The COVID-19 pandemic has had a beneficial impact on the market, due to the rise of remote employment and the expansion of digital transformation of businesses. Businesses are looking for business processes that are seamless, efficient, and accessible from any location. Plus, many businesses have completed their digital transformation, and some of them have decided to stay completely away or work on a digital and in-office hybrid model. Thus, IT teams can expect a sharp increase in demand for internal IT support and ITSM software, and thus boost the analyzed market growth.
Major Market Trends
The IT and Telecommunications Sector is expected to Hold the Largest Market Share
Modernization of IT service management for the IT and telecom sector is a revised approach. This bridges the gap between traditional, on-premise, and cloud-based IT systems. This increases the efficiency and effectiveness of the operation. Thus, integrating how data is captured, analyzed, and shared across businesses provides an enhanced experience for internal IT employees and external constituents.
With the rapid advancement of technology, telecom businesses continue to focus on innovation. Thus, they focus on upgrading their infrastructure while creating innovative solutions to serve their customers, including innovation, customer service, infrastructure setup, and human resources.
Moreover, the implementation of ITSM solutions helps telecom businesses have unified visibility into invoices, costs, usage, and assets across their entire portfolio of communications, cloud, and software licenses. Thus, reducing overall costs and improving productivity, mainly by improving visibility, while providing a finely focused set of processes to manage the existing IT infrastructure. Moreover, IT companies are focusing on ITSM adoption with increasing demand in cloud-based models. With this growing adoption of cloud-based ecosystems, companies have expanded their partnership through new cloud platform offerings.
In November 2021, Tata Communications announced the launch of Tata Communications GlobalRapide; an end-to-end managed unified communications as a service (UCaaS) to enable businesses to deliver digitally advanced, sophisticated, and intuitive collaboration experiences for employees. Tata Communications is becoming a one-stop-shop to address all global businesses with digital-first, cloud-first unified communications requirements in this new ITSM.
According to 5G Americas, growth in 5G subscriptions is expected to continue into the future, reaching 3 billion subscriptions in 2025. This includes 600 million subscriptions from 2023 to 2024 and from 2024 to 2025.
North America to Account for the Most Important Part
North America is a prominent market for ITSM, due to the high adoption of cloud technology and the growing need for improving IT services by end-user industries in the region. According to Site24*7’s IT Management survey report, 62% of respondents reported ease of management as the leading factor in the cloud shift, closely followed by business continuity (60%) and scalability (59 %).
Additionally, a report published in March 2022 with a survey named “A hybrid cloud adoption survey” with 900+ IT professionals suggested that most businesses (93%) use a hybrid cloud and on-premise solutions or fully migrate to the cloud within five years. The survey was mainly conducted in North America and Europe, where 43.8% of respondents were from North America. Thus, the growing shift towards cloud platforms is expected to drive the demand for IT service management solutions in the coming years.
In addition, the region has a strong foothold in ITSM vendors, contributing to market growth. Some of these include IBM Corporation, ServiceNow Inc., BMC Software Inc., and LogMein, among others.
Due to distant working practices after the pandemic, most organizations also take preventative measures to secure their mobile devices and equipment provided to employees. The Canadian Center for Cyber Security encourages Canada’s cybersecurity community, particularly critical network infrastructure defenders, to strengthen their awareness and protection against Russian state -sponsored cyber threats. The cyber center works with United States and United Kingdom partners in recommending proactive network monitoring and mitigations.
The market is witnessing the growth of cloud-based ITSM, due to the rapid adoption of BYOD policies for improved productivity, employee satisfaction, and cost effectiveness. These policies require remote access to information, which is facilitated by cloud-based ITSM solutions.
Competitive Landscape
The managed services market is dominated by major players, such as IBM Corporation and Atlassian Corporation PLC, which have a strong client base in the market. These players continue to provide increased and improved offers. To stay in the market and retain their clients, companies use powerful competitive strategies. This factor intensifies the competition in the market.
In general, the level of competition is high and is expected to remain the same over the estimated time as players offer different services depending on customer demand.
January 2022 – Atlassian Corporation PLC acquires Percept. AI to enhance the AI engine for natural language comprehension in Jira service Management. The company aims to create an integrated experience for customers in the marketplace. Through Percept.AI, the company aims to divert most support queries to tier-1, give users a better experience and free IT teams to focus on more complex tasks.
October 2021-BMC announces acquisition of StramWeaver, a company that helps businesses achieve their end-to-end observability, AI operations (AIOps), cloud migration, and cost reduction goals with integration capabilities of data. The acquisitions are expected to enhance AIOps capabilities with a wide range of out-of-the-box data integrations built on a complementary, modern microservices-based architecture.
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