IT Managed Services

3 min read
INSIGHTS
As at 2017, IBM, ATOS, Infosys, Cognizant, Wipro, TCS, HCL, Capegemini, Datapipe, and Accenture are the Top 10 managed service providers.
PCM generated revenue of $2.25 Billion in the year 2016, the annual revenue of Softchoice has reached over $1 Billion, while IBM generated $79.1 Billion revenue in the year 2017.

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Despite having done a thorough research on the subject, we could not find information that directly relates to the question. However, we found that IBM, ATOS, Infosys, Cognizant, Wipro, TCS, HCL, Capegemini, Datapipe, Accenture is the Top 10 managed service providers in 2017. In the year 2017, IBM generated $79.1 Billion in revenue.


The top 5 MSPs include Sirius Computer Solutions, In. DBA Sirius, PCM Inc., Softchoice Corporation, Carousel Industries, and the Forsythe Technology Inc. This is according to the MSPmentor 501 Global Editions — worldwide company rankings. Revenue weighting is distributed in a pie chart with the following categories in percentage. 5% reselling10% consulting, 15% professional services, 35% cloud and 35% managed services. Managed services cannot be viewed in isolation and are best viewed as business models in the wider service mix. This is according to Christian Nagele who is Autotask’s general manager. Typical MSP will employ a portfolio of services that include a managed variety. PCM generated a revenue of $2.25 billion as at 2016, while the annual revenue of Softchoice has reached over $1 billion.

To search for the information on the top five companies by market cap whose revenue comes predominantly 51% or more from providing its managed services, we researched for reports on the website of MarketandMarkets and the information found was on managed services market growth and forecast. We searched for articles on the website of CIO but we couldn’t find any information on the names of companies which get more than 51% of revenue from managed services, instead the website contains the top 10 IT outsourcing service providers.

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Having not found information on the top 5 companies by market cap whose revenue is predominantly 51% or more from providing IT managed services, we triangulated the information. We looked for information on the top public companies in the managed services space in 2017, and the revenues generated from the managed services. This was achieved by searching for reliable websites like em360tech. However, we did not find the information on revenues for the companies generated from managed services. We then took on to the Business daily, which contained MSPmentor reports on the Best Managed IT Service Providers. We still did not find the percentage revenues of the MSP provider and the weight age as mentioned in the reports was 35%, for managing services. Having gotten no breakthrough, we searched survey reports on the managed services space, on websites like serchit channel. TechTarget. The report stated that managed services cannot be viewed in isolation and typical MSP will employ a portfolio of services that include managed variety.

The research criteria were specific, we could not find any reports, white papers or articles in the public domain, probably because the annual reports of the companies in managed services have not segregated the revenues in this segment from the overall revenues of the company

In conclusion, we could not find information on the top 5 companies by market cap whose revenue comes predominantly 51% or more from providing IT Managed Services. However, we found that IBM, ATOS, Infosys, Cognizant, Wipro, TCS, HCL, Capegemini, Datapipe, Accenture is the Top 10 managed service providers in 2017. In the year 2017, IBM generated $79.1 Billion in revenue.

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