Expect 18% Revenue Growth in 2023: Managed Service Providers in Singapore

Barracuda Networks, Inc., a trusted partner and leading provider of cloud-first security solutions, has released new research that shows how Managed Service Providers (MSPs) in Singapore are adapting their service portfolio to meet customers’ evolving security challenges, such as a remote and hybrid workforce and the ever-expanding attack surface. For example, 37% of MSPs say they see significant business opportunity in cloud-based applications, and cloud-based infrastructure (39%), in network security (34%) and in Security Operations Centres (29%) in 2023.

The findings are detailed in a new report, The Evolving Landscape of the MSP Business 2023, published in conjunction with Barracuda’s Global MSP Day. MSP Day is now in its sixth year and comprises a series of live and virtual events for MSPs, hosted around the world.

“MSPs are a vital component of the cybersecurity landscape, helping organisations of all sizes to protect their increasingly connected employees, assets, data and IT infrastructure from a growing range and intensity of cyberthreats,” said Luke Smith, Regional Account Director, APAC, Barracuda
MSP.
“Our research shows how seriously MSPs take that commitment. It highlights some of the opportunities MSP see in 2023 as well as the challenges they face competing for talent and market share alongside other commercial entities. We hope the findings will help the security community to better understand the needs and concerns of MSPs.”

Key findings of the report include:

• MSPs in Singapore face 2023 with optimism
• Although the uncertainty of the economy continues into 2023, the MSPs surveyed have [ambitious/cautious] plans for growth, anticipating an average revenue increase of 18% – from $16.01 million in 2022 to $18.86 million in 2023 – compared to a global average of 25%, from $12 million in 2022, to over $16 million in 2023.
• Growth will be powered by adding new services and supporting new industry sectors.
• Singapore MSPs expect to introduce on average 4 new services for customers in 2023, compared to 3 in 2022.
• 50% are also looking to expand their client base into new industry sectors.
• Growth comes at a price and MSPs face challenges in their own businesses.
• 55% of MSPs are concerned about the heightened competition in the MSP market compared to 2022, and about attracting talent (42%).
• Many believe that significant improvements are needed in their ability to keep up with the latest technology and security trends (39%), and employee well-being (26%).
• Stress levels for the average MSP employee are considerable, with 13% reporting a high level of employee stress.

The report is based on research commissioned by Barracuda from independent research organization, Vanson Bourne, and includes the insights of 500 decision makers and knowledge workers from managed service provider (MSP) organizations across the North America, EMEA, ANZ regions, with between five and 350 employees.

To view the full report, click here.