Current growth rates indicate that the IT services market in Australia is expanding at an impressive 9.2% annually, with estimates suggesting it could reach a staggering $44.3 billion by 2025. This rapid evolution is transforming the landscape of how businesses operate and manage their technology needs.
A Shift Toward Outsourcing
More organisations are realising the myriad benefits of outsourcing their IT requirements to managed service providers (MSPs). This trend is driven by several key factors that underline the necessity of managed services in today’s business environment.
In Australia and New Zealand alone, over 1,300 MSPs are making their mark, contributing significantly to the regional economy and enhancing the technological capabilities of local enterprises.
1. Increasing Adoption of Cloud Services
The cloud has revolutionised operational frameworks for businesses across Australia. By offering unparalleled flexibility, scalability, and cost efficiency, cloud solutions have become indispensable.
IT managed service providers play a pivotal role in this transition, assisting companies in migrating to the cloud, managing cloud environments, and optimising applications hosted in the cloud.
As the cloud adoption rate climbs, so too will the demand for skilled MSPs capable of guiding businesses through this transformation.
2. Rising Cybersecurity Concerns
In 2024, when cyberattacks are becoming increasingly sophisticated, cybersecurity has taken center stage. Companies are prioritising robust security measures to safeguard sensitive information.
MSPs provide comprehensive security solutions, including vulnerability assessments, penetration testing, and incident response. By collaborating with an MSP, businesses can fortify their defenses against evolving threats, ensuring their systems and data remain secure.
3. Focus on Digital Transformation
Digital transformation is no longer a buzzword; it’s a strategic imperative for Australian businesses. The integration of cutting-edge technologies like artificial intelligence, machine learning, and the Internet of Things (IoT) is essential for fostering innovation and enhancing operational efficiency.
IT managed services providers are vital in this journey, offering expertise in emerging technologies and facilitating seamless integration with existing systems.
4. Compliance with Regulations
Navigating Australia’s stringent data protection and privacy regulations can be daunting for many organisations. With laws such as the Notifiable Data Breaches (NDB) scheme and the Australian Privacy Principles (APPs) in place, compliance is critical to avoid significant legal and financial repercussions.
Managed service providers also offer valuable assistance in this area, helping businesses understand and implement the necessary controls to meet regulatory requirements.
IT managed service providers (MSPs) play a crucial role in helping clients comply with various regulations. Here are some key areas of compliance that MSPs typically address:
- Data Protection Regulations:
- GDPR (General Data Protection Regulation)
- HIPAA (Health Insurance Portability and Accountability Act) for healthcare clients
- Cybersecurity Frameworks:
- NIST (National Institute of Standards and Technology) Cybersecurity Framework
- ISO/IEC 27001 for information security management
- Payment Card Industry Standards:
- PCI DSS (Payment Card Industry Data Security Standard) for organizations that handle credit card transactions
- Industry-Specific Regulations:
- FINRA (Financial Industry Regulatory Authority) for financial services
- FERPA (Family Educational Rights and Privacy Act) for educational institutions
- Risk Management and Incident Response:
- Development and implementation of risk management policies
- Incident response plans to comply with regulatory requirements
- Data Breach Notification Laws:
- Ensuring clients meet obligations for notifying stakeholders in case of data breaches
- Employee Training and Awareness:
- Conducting training programs on compliance-related topics, such as phishing awareness and data handling procedures
- Audit and Reporting:
- Assisting with internal and external audits to demonstrate compliance
- Generating compliance reports for regulatory bodies
- Backup and Disaster Recovery:
- Implementing solutions to ensure data is backed up and can be restored, meeting compliance requirements
- Cloud Compliance:
- Ensuring that cloud services used by clients meet relevant regulatory standards
By managing these aspects, MSPs help their clients mitigate risks and maintain compliance with the necessary regulations.
2024 Top 50 Managed IT Service Providers In Australia
For 2024, technical analysis and online research concentrated on cybersecurity, support, infrastructure, and cloud services, highlighting positive trends in business growth, customer satisfaction, technical certifications, and ongoing service improvement.
The MSP Select list below showcases providers with an outstanding record of delivering innovative IT solutions and services that consistently surpass customer expectations.
| Provider Name | Location | Specialties |
|---|---|---|
| First Focus | National | Managed IT Services |
| Centorrino Technologies | National | Managed IT Services |
| Office Solutions IT | National | IT Solutions, Consultancy |
| blueAPACHE | Australia, NZ, Asia | IT Management, Strategy |
| Quorum Systems | National | Managed Services, IT Solutions |
| Alliance Business Technologies | National | Managed IT, Security, Cloud |
| Intuit Technologies | National | Technology Solutions |
| TechPath | National | Managed IT Services |
| Diamond Information Technology | National | Managed IT Services |
| Datcom Cloud | National | IT Solutions, Security |
| The Missing Link | Australia, UK | IT & Cloud, Cyber Security |
| Bremmar Consulting | National | IT Services, Technology Solutions |
| Generation-e | National | Unified Communications, Cloud |
| ADITS | National | Managed IT Services |
| Comunet Pty Ltd | National | IT Consulting Services |
| Huon IT | National | Managed IT Services |
| Linktech Australia | National | Digital Transformation |
| Codify | National | Cloud Services |
| ONGC | National | Technology Solutions |
| Blue Crystal Solutions | National | Cloud, Application Management |
| mcr IT | National | Managed IT Services |
| Kaine Mathrick Tech (KMT) | National | Managed IT, Cyber Security |
| Nuago | Adelaide | Technology Services |
| Canary IT | National | Managed IT Services |
| Blue Connections IT | National | IT Solutions, Managed Services |
| Azured Consulting | National | Microsoft Cloud Solutions |
| Command IT Services | Perth, Karratha | IT Services |
| Austin Technology | National | Managed IT Services |
| Stanfield IT | Sydney | IT Services |
| Qbit IT Solutions | Western Australia | Managed IT Services |
| Lindentech | National | IT Solutions |
| Netier Pty Ltd | National | IT Management |
| HD IT | National | IT Solutions |
| PowerNET IT Solutions | Australia, NZ | Technology Solutions |
| REDD | National | Technology Solutions |
| Truis PTY LTD | National | IT Solutions |
| Steadfast Solutions | National | Service Management |
| Computer One Pty Ltd | Brisbane | IT Solutions |
| Catalytic IT | National | IT Consultancy |
| Empower IT Solutions | National | IT Services |
| Leap Consulting | Perth | IT Consulting |
| NetStrategy | National | IT Services, Cybersecurity |
| AffinityMSP | National | IT Solutions |
| Rodin Business Services | National | IT Services |
| Interlinked | National | Managed Services |
| Superior IT Solutions Pty Ltd | Perth | IT Services |
| Mercury IT | National | IT Solutions |
| Systima | National | Managed IT Services |
| Sensible Business Solutions | Sydney | IT Solutions |
| Technetics Consulting | National | IT Solutions |
Managed Service Providers to Diversify Service Offerings
The pandemic has pushed businesses out of their comfort zones, prompting enterprises across various industries to expand or diversify their income streams and re-evaluate their business models. Managed IT service providers (MSPs) are no exception to this trend.
Although it may seem that MSPs are in a secure position since they supply services to other businesses, many have felt the ripple effects of their clients’ challenges.
As clients adapt their business models or face tighter IT budgets, the demand for outsourced IT services may have declined. Additionally, widespread supply chain disruptions have complicated hardware procurement.
In response, MSPs are pivoting to ensure their ongoing viability. A key trend is likely to be the diversification of service offerings.
For instance, IT Service Management firms traditionally focused on managed services may evolve into hybrid models, incorporating a broader range of cloud computing and IT consulting services, such as IT project management, strategy, and resourcing.
MSPs to Enhance Focus on Customer Experience
While MSPs already prioritise customer needs within their managed services, there is an anticipated increase in their emphasis on delivering quality customer experiences in the coming year.
This shift is driven by the growing importance of Enterprise Service Management (ESM) in modern businesses, leading to heightened expectations for improved services beyond just IT.
Employees now seek streamlined and seamless user experiences with their work tools, prompting IT service firms to enhance their offerings.
MSPs will collaborate with other departments to create customised services and solutions tailored to specific business needs or individual users, ensuring a cohesive user experience.
Managed Service Providers Transition to Cloud Service Providers
IT service firms are confronting a significant shift as many clients increasingly opt to purchase technology directly from online marketplaces, bypassing the procurement services traditionally offered by managed service providers.
However, while this loss may seem detrimental, MSPs are recognising that clients still require ongoing support for managing their cloud computing services.
As a result, an increasing number of MSPs are expected to pivot towards offering cloud services management, either replacing or supplementing their traditional managed IT services and procurement.
The shift suggests that many MSPs will effectively evolve into Cloud Service Providers (CSPs), placing less emphasis on hardware and software sales and focusing more on enhancing the customer experience throughout the client relationship.
A 2022 CompTIA report on Managed Services trends predicts that more MSPs will align with third-party cloud services, providing additional support to help customers manage workloads across various cloud environments.
Furthermore, they will prioritise high-end security services to address customer concerns about cloud safety, reinforcing trust in these evolving service offerings.
The Future is Bright – Managed IT Services Australia
As we look ahead, it’s clear that the IT managed services industry in Australia is not just growing—it’s evolving into a cornerstone of modern business operations.
The combination of cloud services, enhanced cybersecurity, digital transformation, and regulatory compliance is driving a paradigm shift in how organizations approach their IT strategies.
With a strong projected growth trajectory, the sector promises not only economic benefits but also enhanced operational resilience for businesses.
For Australian enterprises, partnering with managed service providers may very well be the key to thriving in an increasingly digital world. As the landscape continues to change, those who adapt will find themselves at the forefront of innovation and success.
