If the past few years have been any indicator, managed services providers should gear up for an even busier future.

Already on the verge of bigger and better things when the COVID-19 pandemic hit, managed IT services are now more important and in demand than ever.

What does the future hold for MSP services in 2022 and beyond?

Here are a few trends emerging in managed IT services to help companies start planning and preparing.

1. Continued Growth in Vertical Markets

As the need for managed IT services has exploded, it has done so largely in vertical, niche markets the most.

Businesses involved in consumer-based industries are experiencing significant growth since the start of the pandemic, leaving them all with a need to expand their MSP services so they can better serve all those customers.

Industry predictions suggest that while managed services providers are working to increase smaller, vertical markets today, traditional and legacy industries like construction, real estate, manufacturing, and utilities will soon be following along in needing bigger, more capable networking power.

2. Increasing Demand for Digital Transformation

The main challenge that a wide variety of businesses in all sectors have faced since the start of the pandemic has been getting people out of the office and being productive remotely.

Managed IT services have catered mainly to organizing the digital transformation of their clients, a trend that continues to grow.

Businesses of all kinds are finding themselves in need of a knowledgable, experienced vCIO, or virtual Chief Information Officer, a role that any MSP offering the right applications and networking environments can assume for them.&

3. MSP Consolidation

Yet another effect of the pandemic being seen in the managed IT services industry is the gradual consolidation of smaller companies into larger ones.

Managed service providers looking to expand their reach into newer markets, provide for newer niches, and offer additional applications are acquiring smaller ones to do it with.

The expectation is that more of the smaller national platforms will be consolidated into some of the larger MSP services as 2022 goes on.

4. MSP/Vendor Partnering Gaining Ground

Lastly and partly as a result of the consolidation of some smaller managed IT services, expect to see many MSPs partnering with application vendors directly as a means of offering a more useful, all-around service.

Co-innovation within managed services allows both the application vendor and the MSP provider to provide services separately yet simultaneously to various clients in need of both products.

Partnerships like these also work well to facilitate the transformation to a digital workforce by providing the functionality needed to accomplish it in one package.

MSPs Can Look Toward Another Busy Year in 2022

With the need for managed IT services already on the increase prior to 2020, current events have quickly compounded that need, creating strong demand for service providers.

It is estimated that IT spending will continue to increase in 2022 and beyond to more than 30% in the next five years or so.

Managed IT services are a necessary solution for both consumer-based and service-oriented companies in a variety of ways.

With this growing need across both broad and niche industries, MSP services are answering the call through their own growth.

Consolidation of smaller providers into larger ones is becoming one means of providing a broader scale of services to clients as is the growing number of partnerships between managed services providers and the vendors of complementary applications.

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