Managed service providers have traditionally focused on keeping systems running. Infrastructure management, support services, monitoring, and operational stability have been at the core of their offering. For many years, this model has delivered consistent value to clients and predictable revenue for providers.
But the expectations of clients are changing – and changing fast. The global managed services market was valued at approximately $380 billion in 2025 and is projected to exceed $1.2 trillion by 2035[1]. That growth is not coming from traditional support alone. It is being driven by organisations that want their technology partners to help them transform – not just maintain the status quo.
Why client demand is shifting
As businesses modernise their technology environments, they are adopting new platforms, migrating to the cloud, integrating systems across their operations, and preparing data for AI and analytics. These changes create new challenges that go well beyond routine IT support.
Data must be moved between systems – often from legacy platforms to modern cloud environments. Information must be integrated across applications to eliminate silos and enable reliable reporting. Historical records must be cleansed and restructured to meet the requirements of new platforms. And all of this must be done securely, accurately, and without disrupting ongoing operations.
Clients increasingly expect their MSPs to support these initiatives. Research indicates that 57% of IT leaders across the US and Europe plan to expand their spending with MSPs specifically to manage and govern their cloud environments[2], and small and medium-sized businesses are now allocating roughly 19% of their IT budgets to managed services. The demand is clear – and it extends well beyond infrastructure monitoring into data migration, integration, and transformation.
Recent industry findings reinforce the trend. Auvik’s March 2026 IT Trends Report found that the gap between IT ambition and execution is widening – driven by AI optimism outpacing readiness, growing shadow IT, staffing constraints, and tool sprawl – creating a larger strategic role for MSPs than ever before[3]. In the UK, Westcon-Comstor reported that MSPs are increasingly being asked to make hybrid environments consistent for customers, particularly where data needs to move reliably between platforms – with those that can productise governance and operational management best placed to build recurring revenue[4].
Why migration and integration are becoming essential services
Data migration and integration are now central to virtually every digital transformation programme. Without them, new systems cannot function effectively. Information remains fragmented, processes become inefficient, and the value of new technology investments is significantly reduced.
Consider the numbers: The average enterprise runs 897 applications, yet only around 29% are integrated[5]. Data migration projects have a reported failure rate of up to 83% when measured against original budgets and timelines[6]. These are not peripheral challenges – they are the defining risks of modern technology programmes.
For MSPs, this creates both a challenge and an opportunity. The challenge is capability: Migration and integration require specialist expertise that goes beyond traditional support services. Data must be profiled, cleansed, mapped, transformed, and validated to ensure it functions correctly in new environments. The opportunity is growth: By offering these services, MSPs can expand their role within client organisations, moving from operational support to strategic transformation partner.
Why building internal capability is difficult
While the opportunity is clear, building internal migration and integration capability is not always straightforward. Specialist data skills are in high demand – the Komprise 2026 survey found that 62% of organisations identified AI data management as a top skills gap, up from 43% in 2024[7]. Cloud storage strategy and data security expertise were also flagged as critical shortages.
For MSPs, this presents a resourcing dilemma. Data migration and integration skills are often required at specific stages of projects rather than on a continuous basis. Maintaining a full internal team for occasional transformation work can introduce cost and underutilisation. Yet without these capabilities, MSPs risk being excluded from the most valuable and strategically important work their clients need.
The workforce constraint is an industry-wide challenge: 52% of MSPs identify hiring as their primary struggle, and 68% of IT leaders highlight major hurdles in recruiting cloud and cybersecurity expertise[8].
The role of partnership-led delivery
Many MSPs are addressing this challenge by adopting partnership-led models. Rather than building every capability internally, they work with specialist data providers who can support migration and integration projects when required.
This allows MSPs to expand their service offering without significantly increasing overhead. They retain ownership of the client relationship while accessing the expertise needed to deliver complex transformation programmes. The specialist partner handles data profiling, cleansing, migration, and integration – activities that require deep domain knowledge and proven methodologies – while the MSP manages the broader programme and maintains continuity with the client.
This is not a new model, but it is becoming more structured and more common. White-label partnerships have emerged as a preferred solution across the MSP sector, enabling providers to deliver specialist services and enterprise-grade capabilities without building full in-house teams.
The commercial advantage for MSPs
This shift creates clear commercial benefits. MSPs can increase revenue by offering higher-value services that command better margins than routine support. They strengthen client relationships by supporting transformation initiatives that are strategically important to the business. And they differentiate themselves in a competitive market where – as the industry data consistently shows – being “just an MSP” is no longer enough.
At the same time, partnership-led models reduce delivery risk. Rather than attempting complex data work without the requisite expertise, MSPs can draw on specialists who focus on data-related challenges full-time. This protects the client from poorly executed migrations, protects the MSP from reputational risk, and delivers better outcomes for everyone involved.
Redefining the role of the modern MSP
The role of the MSP is evolving – from infrastructure support to transformation enablement, from reactive maintenance to proactive strategic partnership. Data migration and integration sit at the centre of this shift.
MSPs that recognise this opportunity and adapt their service offering accordingly – whether by building internal capability, partnering with specialist providers, or a combination of both – will be better positioned to grow, compete, and deliver long-term value to their clients. Those that remain anchored to traditional support models risk being bypassed as clients look elsewhere for the transformation expertise they need.
The managed services market is growing. The question is whether your organisation is growing with it.
References
- Managed Services Market Size, Share & Forecast Report 2026-2035 Research Nester[↩]
- Managed Services Market Growth Is Booming Jumpfactor[↩]
- MSP Today MSP Today[↩]
- Hybrid IT sparks MSP opportunities Computer Weekly Microscope[↩]
- Integration Solution Trends and Statistics for 2026 ONEiO[↩]
- Top Data Migration Challenges & How to Overcome Them Kanerika / Medium[↩]
- Komprise 2026 State of Unstructured Data Management Komprise[↩]
- Top 12 Managed Service Provider (MSP) Trends 2026 DeskDay[↩]