IT and Apps Managed Services Market Trends: Quarterly Report for Q3 2022

November, 2022


In this quarterly report, Avasant provides key information on IT Services Solution and Pricing Trends. The report covers market (buyer) perspective, macro trends from service provider community and finally, the pricing, solution and staffing trends in the space. The report covers trends across services including Infrastructure and Cloud Services, Application Services, and Digital Services. The geographic coverage is global, with a larger share of data points from North America. The report builds on insights gathered through our enterprise interactions, ongoing market research and data collection, as well as AvaMark Price Benchmarking database.

In addition to pricing commentary, Avasant covers market data from providers through a number of sources i.e. Public Disclosures, Market Interactions and Deal Data. This report also highlights the key trends in the market and Avasant’s viewpoint on the future direction of the industry.

Key Buyer Trends Shaping the market:

    • Global events are leading to a challenging environment
    • Cost reduction initiatives are a priority
    • Deal trends are changing
    • A shift in sourcing strategy to deal shaping

Key service provider trends:

    • Revenue growth slows for providers
    • Operating margins have stabilized, though cost challenges persist
    • Input cost pressures continue to weigh on providers
    • Clients are cautious about spending; providers are optimizing input levers

Managed Services Pricing and Solution Trends:

    • Rates continue to rise for premium skills and digital talent
    • Prices increased on FTE rate cards while managed services deals remained competitive
    • Clients are looking at redefining operating models
    • Service providers leverage strategic pillars