Demand for Managed Security Services Expected to Gain Traction in the Near Future

Managed security services are used for systematic supervision of all security apparatus deployed in an organization. Such services are typically outsourced to third party vendors commonly known as managed security service providers. By outsourcing them, organizations cut down on additional expenses on their security needs, which is well taken care of by third party vendors. The services offered by managed security services providers are efficient, cost effective, secure and are constantly upgraded to tackle new incoming security threats. Moreover, these services adhere to all regulatory compliances, offering 24-hour support.


There are various services that fall under managed security services namely anti-viral services, on-site consulting, vulnerability management, security audits and compliance monitoring, intrusion detection system, threat management, security information and event management, virtual private network, perimeter management of the network of the client, penetration testing, round the clock monitoring, firewall management, DDoS attacks, and endpoint security and product resale. In addition, these services have become an essential need in sectors such as BFSI, retail, healthcare, telecommunication and IT, industrial manufacturing, energy and utilities and government.

On the backdrop of increasing frequencies of malicious cyber-attacks, organizations are forced to deploy high-end managed security services. Furthermore, organizations can reach economies of scales by outsourcing such service requirements. Effective cyber intelligence is essential for delivering instantaneous response to real-time incidents. This, in turn, is expected to fuel the demand for cyber analytics including filtering of the appropriate thread feeds, rejecting suspicious and inappropriate data, suggesting the right means to handle the data and also analyzing security event log data. Most of the organizations lack the capability and resource to support these function. Thus, this leads to partnering with expert security service providers to minimizing risks and receive efficient network support for analyzing and monitoring. Moreover, organizations may sometimes invest heavily in creating in-house networks security infrastructure, which may quickly become outdated with arrival of newer technologies. This makes outsourcing of managed security services even more important in order to limit heavy investments for creating short-term solutions.

On the other hand, managed security service providers face severe problems in scaling their business owing to low levels of scalability of such platforms and security tool in the market. Likewise, these services do not come as pre-packaged security technologies. Moreover, limited backend support is a major flaw in a majority of managed security service applications. The risk associated with handling sensitive and critical data of the organization by third party vendors due to the apparent risk of information leak is an additional factor expected to inhibit the demand for third-party managed security services.


Managed security service providers are strongly focusing on providing extended and customized service according to the requirement of the organization. For instance, Avnet, Inc. has recently launched an advanced managed security service program to cater to the specific requirements that the clients demand. The program is currently available only in North America. The company believes the program will support its client to improve their security practices without spending a hefty amount. Avnet has named the managed security service program as ‘Recon’, which will be a part of its security specialist business unit. The program offers 24×7 surveillance and management. Further, the program runs on a unified security management system that offers continuous reconstruction and threat detection.

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By the end of 2016, the global market for managed security services is anticipated to surpass US$ 19 Billion and is estimated to reach a market valuation of US$ 100.88 Billion by 2026. The market in North America is expected to grow at a healthy pace in the near future owing to the strong presence of major managed security services providers in the region.


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