
IT Managed Services Trends & Innovations: What's Next?
The global managed services market was valued at over 344 billion U.S. dollars in 2024 and is projected to exceed 600 billion by 2030. IT is expected to lead the global managed services market in its projected record growth—at an expected CAGR of 13.1% through 2030.
This remarkable growth is largely fueled by innovation. As technology evolves, so do the strategies and tools managed service providers (MSPs) use to deliver value, improve service delivery, and enhance client satisfaction.
Below we explore the latest trends and innovations in IT managed services and their transformative impact on the industry.
What are IT managed services?
IT managed services refers to the outsourcing of IT functions or services to external providers rather than handling them in-house. This can include a wide range of functions and services, from software development to infrastructure management, network operations, technical support, compliance, and cybersecurity.
Two key types of providers dominate this space:
- Managed Service Providers (MSPs): Broadly focus on optimizing IT infrastructure and operations.
- Managed Security Service Providers (MSSPs): Specialize in cybersecurity services, such as threat monitoring, intrusion detection, and firewall management.
Both MSPs and MSSPs play pivotal roles in filling gaps in internal IT teams, providing scalable solutions, and ensuring operational excellence for clients.
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IT managed services trends and predictions
Innovations in IT managed services are reshaping the industry, introducing advanced technologies and service models that elevate operational efficiency and client satisfaction. Here are seven trends we predict will dominate the industry this year and beyond.
Trend 1: MSPs will be challenged to help businesses navigate security AI and automation.
Nearly three-quarters (73%) of business leaders are feeling pressure to implement AI at their organizations, but 72% said their organization lacks the skills to fully implement AI and ML. This is particularly true in the area of security and points to why many organizations still have not deployed any security AI and automation despite its proven benefits in helping organizations identify and contain data breaches faster and significantly lower breach costs.
According to IBM’s latest Cost of a Data Breach Report, 33% of organizations still have no security AI and automation deployed. Breaches at these organizations cost $5.72 million on average, which was $1.08 million (or 19%) more than breaches at organizations with limited use of security AI and automation and $1.88 million (or 33%) more than breaches at organizations with extensive use of these technologies. Organizations that didn’t use security AI and automation also took nearly 100 days longer to identify and contain breaches than organizations that extensively used these technologies.
MSPs are well-positioned to bridge this skills gap. By integrating AI-driven security solutions into their offerings, they can help their clients navigate this new landscape and unlock AI’s potential for cybersecurity.
"As AI capabilities expand, Managed Service Providers (MSPs) are becoming even more critical in helping organizations navigate this complex landscape. While AI can now automate many traditionally labor-intensive tasks like patch management and vulnerability scanning, MSPs bring the strategic expertise needed to properly implement and govern these AI systems. The most successful MSPs in 2025 will be those who position themselves not just as technology implementers, but as strategic advisors who can help clients balance AI automation with proper security controls and human oversight." — Aaron Melear, VP Partnerships, Secureframe
Trend 2: MSPs will need to adopt AI themselves to improve efficiency and expertise.
MSPs today are challenged not only with helping clients understand and implement AI at their organizations but also to adopt AI to enhance their own operations. This is a direct response to clients’ demands for services that incorporate AI and machine learning and for guidance in identifying AI tools in a cost-effective, compliant, and sustainable manner.
Having hands-on experience evaluating and implementing AI tools for their own business will enable MSPs to:
- Build expertise in AI technologies.
- Guide clients in identifying cost-effective and sustainable AI solutions.
- Prepare to answer complex client queries about emerging AI use cases, such as digital workers and agentic AI.
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Trend 3: Continuous compliance as a service will be a bigger focus area.
According to a recent report, 80% of service providers already offer some form of compliance services. However, many only offer compliance in an advisory capacity and only 15% offer compliance primarily as a managed service.
This represents a significant growth opportunity for MSPs and MSSPs considering. The CaaS market is expected to accelerate its growth, increasing from $7.55 billion in 2023 to $26.75 billion by 2032.
However, service providers must embrace automation and other technologies to improve their current approach. Approximately half of MSSPs and MSPs use spreadsheets to track customer compliance and 85% say they face “significant challenges” maintaining compliance for customers.
As a result, many service providers are looking to embrace automation in order to offer continuous compliance as a service. In fact, 87% of surveyed respondents said they are open to delivering compliance services through a compliance automation platform and 86% said they want to shift from one-off projects to recurring revenue efforts through continuous compliance as a service.
This shift from one-off projects to recurring compliance services will enable MSPs to:
- Streamline their compliance processes.
- Address significant client challenges in maintaining compliance year round.
- Unlock more recurring revenue from their compliance services.
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Trend 4: The adoption of hybrid and multi-cloud solutions will accelerate.
Organizations increasingly leverage cloud technologies, from productivity apps to software development tools to storage infrastructure, as a faster, more cost-effective, and scalable alternative to on-premises solutions. Yet, as cloud deployments grow in complexity, the benefits can diminish without expert management. MSPs are stepping in to address these challenges by offering hybrid and multi-cloud solutions:
- Hybrid Cloud: Combines on-premises, public, and private cloud services.
- Multi-Cloud: Integrates multiple cloud platforms simultaneously.
These offerings enable client organizations to maximize their cloud investments, ensuring flexibility and resilience. Investing in these solutions now will be important for MSPs to generate revenue in the long term and positioning themselves as indispensable partners that can scale alongside their clients since both hybrid cloud and multi-cloud represent a high-growth sector. For example, the multi-cloud infrastructure market exceeded $8 billion in 2022 and is projected to grow at a 28% compound annual growth rate (CAGR) from 2023 to 2030.
Trend 5: MSPs will invest in blockchain for data protection.
Going forward, a heavy focus will be placed on cybersecurity and data protection by both managed service providers (MSPs) and their clients. Many will turn to blockchain for secure data storage.
Blockchain’s immutability ensures that data, once recorded, cannot be altered without authorization. This makes it ideal for:
- Maintaining audit trails for financial transactions and legal documents.
- Storing critical cybersecurity data like access logs and security incidents.
By leveraging blockchain, MSPs can offer unparalleled data integrity, bolstering client trust in high-stakes environments.
Trend 6: Sustainable technologies will be a bigger focus for MSPs and their clients.
Sustainability is also going to be a top priority, with Gartner highlighting energy-efficient computing as a leading consideration for most IT organizations.
To meet client demands, especially at the board level, for environmental responsibility and regulatory adherence, MSPs are expected to adopt eco-friendly technologies and practices, such as:
- Utilizing energy-efficient hardware.
- Sourcing renewable energy for data centers.
- Developing low-energy AI models.
- Implementing carbon accounting measures to track and reduce emissions.
By adopting these practices, MSPs will be better prepared to meet regulatory requirements and appeal to environmentally conscious clients.
Trend 7: An industry push towards the customer-first model.
Research shows that 80% of companies are looking to change MSPs within the year. To improve their relationships with clients, MSPs are recognizing the importance of placing the customer at the center of their service model rather than sticking with traditional subscription or pay-per-project models.
As part of this client-centric approach, MSPs are increasingly:
- Focusing on measurable client success rather than rigid contracts.
- Offering self-service options and intuitive interfaces.
- Delivering tailored solutions that align with client-specific goals.
This model fosters deeper partnerships, where MSPs act as true collaborators in driving business growth by delivering more personalized, outcome-driven services.
The Future of IT managed services
As MSPs adopt hybrid cloud strategies, integrate AI, embrace blockchain, and focus on sustainability, they position themselves as indispensable partners in their clients’ success.
For organizations seeking to stay ahead in this dynamic landscape, choosing forward-thinking MSPs that prioritize innovation and customer-centricity will be critical. These providers not only address today’s challenges but also pave the way for long-term success in an ever-evolving digital world.
See how Secureframe and its trusted Service Partner network are driving innovation in IT managed services and the security and compliance industry by scheduling a demo today.