Study Reveals: UK Boasts 11,492 Active Managed Service Providers

A comprehensive government-commissioned study sheds light on the landscape of the UK's managed services sector.

A recent study commissioned by the Department for Science, Innovation and Technology (DSIT) has unveiled that the UK is home to 11,492 active managed service providers (MSPs).

Conducted between June and September 2023 by Perspective Economics, with data support from glass.ai, the study was initiated to delve into the size and scope of the MSP market within the UK.

According to the findings, these MSPs collectively generate an impressive annual revenue of £52.6 billion from managed services activities and employ approximately 294,340 full-time employees.

The study defines managed services as per the government's outlined criteria, which includes services related to IT infrastructure, networks, applications, and security, delivered by one business to another.

Notably, UK MSPs have demonstrated a commendable annual growth rate of 12% over the past five years. Interestingly, while large MSPs constitute only 4% of the firms, they contribute a staggering 74% (£38.8 billion) to the total estimated revenue. Mid-sized MSPs, on the other hand, account for 9% of the firms but generate 16% (£8.4 billion) of the revenue. Small and micro MSPs collectively comprise 87% of the sector but contribute just 10% of the total revenue.

This study offers invaluable insights into the diverse landscape of the UK's managed services industry, highlighting the significant contributions of MSPs of all sizes to the nation's economy and IT ecosystem.

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