The Decline of Traditional Managed Support gives Rise to Self-Determined Digital Strategies

The COVID-19 pandemic has catalysed a significant shift in the IT landscape, presenting abundant opportunities for digital transformation. Yet, the era of traditional managed support, once heralded as a panacea for IT management challenges, is witnessing a pronounced and continued decline. The latest data underscores this trend: a 2023 ISG report highlights a 15% decrease in managed support contracts in North America over the past five years, the European IT Outsourcing Survey 2022 reveals a 12% drop in adoption among European businesses, and IDC reports a 10% reduction in managed support services in the Asia-Pacific region between 2019 and 2023.

This decline is more than a statistical anomaly; it signals a broader transition towards self-determined digital strategies. Organisations' are increasingly leveraging advancements in self-service platforms, AI, and automation to maintain greater control, enhance customisation, and reduce costs. The traditional managed support model, with its standardised, one-size-fits-all approach, is no longer sufficient in an era that demands agility, personalisation, and rapid innovation.

Organisations are pivoting away from managed support for several reasons.

The global certification and training market, valued at approximately USD 34.2 billion in 2020, is expected to reach USD 54.9 billion by 2026, growing at a CAGR of 8.9%. This surge in certifications, particularly in internationally benchmarked digital skills, is synonymous with organisations opting to ditch management support in favour of internally building and maintaining a highly skilled workforce, ensuring greater control and customisation of their IT infrastructure (with AI playing a new role).

First, the lack of customisation in traditional MSP solutions has become a critical and costly pain point. A one-size-fits-all approach often fails to meet the unique needs of organisations', leading to inefficiencies and misaligned technology with strategic goals or, worse, a reason behind the existence of strategic drift. Second, reliance on external providers introduces significant risks, from security vulnerabilities to operational disruptions. The need for greater control over IT infrastructure has never been more pressing, and businesses are responding by building internal capabilities.

The rise of self-service workforce enablement, the new MSP eNaaS era, digital strategy and support platforms, AI, and automation technologies is revolutionising what was the IT support and customer service world. These technologies offer unprecedented flexibility, enabling organisations to tailor solutions to their specific needs. Automation reduces operational costs and improves efficiency, while AI-driven tools enhance decision-making and predictive maintenance. This shift is not just about technology; it's about empowering organisations to innovate and respond dynamically to changing market conditions.

Rediverting elusive digital value "waste" or "cost lines" once that lined the MSP pocket, to more an investment in workforce development and as-a-service industry qualifications, is a critical component of this transformation. Indeed, reflecting both the demise of the MSP model and rise in self-empowerment, the global certification market, valued at approximately USD 34.2 billion in 2020, is projected to reach USD 54.9 billion by 2026, growing at a CAGR of 8.9%.

Certifications in key areas such as cybersecurity, cloud computing, and data analytics are surging, among a rich and growing certification landscape, with a 30% increase in enrollments in 2020 alone. By equipping their workforce with advanced skills, organisations can internalize expertise, driving innovation and ensuring that their digital strategies are closely aligned with their business objectives.

As reflected in the full paper, the decline of traditional managed support marks a significant shift in the IT landscape. Organisations are moving towards self-determined digital strategies, leveraging self-service platforms, AI, and automation to achieve greater control, customisation, and cost-efficiency. This transformation is underpinned by a strong investment in as-a-service workforce development, enabling organisations to build and maintain a highly skilled workforce in concert with self-determined digital, support and AI empowered service delivery. As the market for industry qualifications continues to grow, companies are better positioned to navigate the complexities of the digital age, driving innovation and securing a competitive edge. The era of legacy or traditional managed support may be ending, but a new, more agile, and innovative chapter in eNaas and IT management is just beginning.

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