Managed Services Industry: Key Sectors Driving Growth 

TL;DR: The managed services industry is rapidly growing, helping businesses in healthcare, finance, real estate, and more improve efficiency through managed operations and managed security services. 

The managed services industry has evolved from a niche of IT support function into a multi-billion-dollar ecosystem serving nearly every sector. Companies across healthcare, finance, real estate, and hospitality are now embracing managed operations to improve efficiency and accelerate sustainable growth. 

Global technology spending is projected to reach USD 4.9 trillion by the end of 2025. The managed services industry is expected to grow from USD 365.33 billion in 2024 to USD 511.03 billion by 2029, reflecting a 6.9% CAGR.  

This momentum is driven by scale and diversity. Managed services now extend beyond traditional IT outsourcing into security, infrastructure, and operational support. The shift represents a new operating model where businesses compete through agility, expertise, and continuous optimization. 

Managed Operations in Healthcare: Revolutionizing Patient Care 

The healthcare sector leads managed services industry trends with rapid adoption driven by staffing gaps and escalating administrative costs. More medical facilities now outsource essential processes like billing, claims, and patient scheduling to sustain quality while reducing internal workload. 

Healthcare organizations using managed operations often experience improved efficiency, reduced administrative burdens, and enhanced patient experiences. According to a study, many healthcare executives anticipate growth opportunities from strategic outsourcing partnerships. 

Your healthcare organization can leverage managed services for: 

• Medical billing and coding operations 

• Patient appointment scheduling and follow-up 

• Insurance verification and claims processing 

• Electronic health record management 

• Telehealth support services 

The managed services industry in healthcare helps address workforce challenges, operational complexity, and service delivery pressures. With workforce concerns cited as a top issue by many health system executives, managed operations provide practical support. 

Financial Services Embrace Managed Security Services 

The banking and financial sector increasingly adopts managed security services due to regulatory requirements and growing cyber risks. According to IBM, the average global cost of a data breach reached USD 4.88 million in 2024. For financial institutions, breach costs can be higher than the global average. 

Managed security services in finance include: 

• 24/7 security monitoring and threat detection 

• Compliance reporting and regulatory adherence 

• Fraud prevention and transaction monitoring 

• Risk assessment and vulnerability management 

• Incident response and recovery services 

The managed services industry provides specialized offerings for financial organizations. Providers often maintain teams familiar with regulations such as SOX, PCI-DSS, and GDPR. This expertise can reduce costs compared with developing in-house security capabilities. 

Banks using managed security services may experience fewer security incidents and faster threat response times. These improvements support customer trust and regulatory compliance, important factors for financial institutions. The managed security services market is expected to continue growing in the coming years. Using managed security services is increasingly seen as a practical approach for financial institutions managing cybersecurity and regulatory challenges. 

Real Estate and Property Management: Administrative Excellence 

The managed services industry significantly enhances real estate operations by streamlining property management, leasing coordination, and client communication. Outsourcing tasks like data entry, listings management, contract processing, and virtual assistance allows firms to maintain quality client relations. 

Real estate firms utilizing managed operations experience: 

• Faster transaction processing through efficient workflow management. 

• Reduced administrative overhead by delegating routine tasks to experts. 

• Improved coordination and communication between agents and clients. 

• Enhanced lead generation and follow-up processes for stronger client engagement. 

• Better compliance with local regulations and documentation requirements. 

By leveraging offshore administrative support through the managed services industry, real estate businesses can efficiently handle routine tasks. This approach allows teams to focus on client relationships and deal closures. It is especially effective for property management companies managing multiple locations and diverse property types. 

Hospitality Sector Transforms Through Managed Services 

The hospitality industry increasingly relies on the managed services industry to meet evolving consumer expectations and complex operational demands. 

Hotels, restaurants, and entertainment venues are outsourcing functions, from reservation systems to customer service, to enhance efficiency and guest satisfaction. 

Key managed services in hospitality include: 

• Guest Reservation and Booking Management: Streamlining bookings to improve guest convenience and operational efficiency. 

• Customer Service and Complaint Resolution: Addressing guest concerns promptly to increase satisfaction and loyalty. 

• Revenue Management and Pricing Optimization: Using data analytics to adjust pricing strategies and maximize revenue. 

• Marketing and Social Media Management: Managing campaigns and online presence to attract and retain guests. 

• Housekeeping and Maintenance Coordination: Ensuring timely cleaning and maintenance to uphold property standards. 

Your hospitality business benefits from managed services industry expertise in handling seasonal fluctuations and peak demand periods. Providers offer scalable solutions that adjust staffing and resources based on occupancy rates and business cycles. 

Telecommunications Leverages Managed Network Services 

The telecom sector represents one of the fastest-growing segments within the managed services industry. You’re witnessing explosive growth as 5G rollouts and network complexity drive demand for specialized managed operations. 

Telecom managed services encompass: 

• Network monitoring and optimization 

• Security threat detection and response 

• Infrastructure maintenance and upgrades 

• Customer support and technical assistance 

• Compliance and regulatory reporting 

Your telecom organization can leverage managed security services to address the growing threat landscape while focusing resources on innovation and customer acquisition. The managed service industry provides specialized expertise in areas like network slicing and edge computing that would be costly to develop internally. 

Manufacturing Adopts Managed Operations for Efficiency 

Manufacturing companies are increasingly turning to the managed services industry to handle non-core functions, allowing them to focus on production and innovation. This trend is accelerating as manufacturers face pressure to reduce costs while maintaining quality standards. 

Managed operations in manufacturing include: 

• Supply chain management and logistics coordination 

• Quality control and compliance monitoring 

• Equipment maintenance and predictive analytics 

• Administrative and back-office functions 

• Customer service and order processing 

Your manufacturing business benefits from managed services that provide specialized expertise without the overhead of full-time staff. This approach proves particularly valuable for companies expanding into new markets or launching new product lines.

Retail and E-commerce Scale Through Managed Services 

The retail sector’s embrace of the managed services industry reflects the complexity of modern commerce operations. You’re managing multiple sales channels, inventory systems, and customer touchpoints that require specialized expertise. 

E-commerce businesses particularly benefit from managed operations that handle: 

• Customer service and support operations: Providing 24/7 assistance to enhance customer satisfaction. 

• Order processing and fulfillment coordination: Streamlining the order-to-delivery process for efficiency. 

• Inventory management and demand forecasting: Utilizing data analytics to predict and manage stock levels. 

• Digital marketing and social media management: Crafting targeted campaigns to reach the right audience. 

• Returns processing and customer retention: Implementing strategies to handle returns and build customer loyalty. 

Your retail business can leverage the managed services industry to scale operations during peak seasons without permanent staffing increases. This flexibility proves crucial for businesses with seasonal variations or rapid growth trajectories. 

Related post: Managing Reputation Risks Through Strategic Outsourcing 

Harnessing Growth in the Managed Services Industry 

The managed services industry represents a fundamental shift in how businesses operate and compete. You’re witnessing unprecedented growth across healthcare, finance, real estate, hospitality, telecommunications, manufacturing, and retail sectors. Each industry leverages managed operations to reduce costs, improve efficiency, and focus on core business objectives. 

Your organization can benefit from this trend by carefully evaluating which functions would benefit from managed services. Whether you need managed security services for cybersecurity protection or comprehensive managed operations for administrative support, the managed service industry offers solutions tailored to your specific needs. 

Frequently Asked Questions (FAQs) 

Q1: What is the managed services industry? 

The managed services industry encompasses businesses that provide ongoing operational support, maintenance, and management of specific business functions or IT systems for other organizations. This includes everything from IT support to administrative services across various sectors. 

Q2: What sectors benefit most from managed operations? 

Healthcare, finance, telecommunications, and real estate show the highest adoption rates for managed operations. These sectors benefit from specialized expertise, cost reduction, and improved operational efficiency. 

Q3: How do I choose the right managed service provider? 

Evaluate providers based on sector expertise, security certifications, scalability options, and performance guarantees. Look for managed service provider industry companies with proven track records in your specific business sector. 

Q4: What is the future of the managed services industry? 

Managed services industry trends point toward increased AI integration, outcome-based pricing models, and specialized sector solutions. The industry will continue growing as businesses focus on core competencies while outsourcing operational functions. 

The managed services industry is evolving, with growing demand for turnkey workforce solutions. CORE® Managed Services goes beyond traditional outsourcing and EOR services, managing your Philippine team from hire to day-to-day operations with ease. We handle compliance, streamline processes, and connect global employers with skilled Filipino talent, making cross-cultural collaboration seamless. Every engagement is personalized, ensuring your team thrives. Partner with us today!