it to SMB companies. In the new economy, IT manufacturers are currently moving away from a "box-shifting" resale to a more customized, managed service offering. In this transition, the billing and sales processes of intangible managed services, appear as the main challenges for traditional resellers. The global managed services market is expected to grow from an estimated $342.9 Billion in 2020 to $410.2 Billion by 2027, representing a CAGR of 2.6%. Types In the information technology area, the most common managed services appear to evolve around connectivity and bandwidth, network monitoring, security, virtualization, and disaster recovery. Beyond traditional application and infrastructure management, managed services may also include storage, desktop and communications, mobility, help desk, and technical support. In general, common managed services include the following applications. Provision Definition A Managed IT Services Provider (also known as an 'MSP') is a third-party service provider that proactively monitors & manages a customer's server / network infrastructure, cybersecurity and end-user systems against a clearly defined Service Level Agreement (SLA). Small and medium-sized businesses (SMBs), nonprofits and government agencies hire MSPs to perform a defined set of day-to-day management services so they can focus on improving their services without worrying about extended system downtimes or service interruptions. These services may include network and infrastructure management, security and monitoring.. Most MSPs bill an upfront setup or transition fee and an ongoing flat or near-fixed monthly fee, which benefits clients by providing them with predictable IT support costs. Sometimes, MSPs act as facilitators who manage and procure staffing services on behalf of the client. In such context, they use an online application called vendor management system (VMS) for transparency and efficiency. A managed service provider is also useful in creating disaster recovery plans, similar to a corporation's. The managed services model has been useful in the private sector, notably among Fortune 500 companies, and has an interesting future in government. Main players Main managed service providers originate from the United States (IBM, Accenture, Cognizant), Europe (Atos, Capgemini) and India (TCS, Infosys, Wipro). See also Application service provider Customer service Enterprise architecture Information technology outsourcing Managed service company Remote monitoring and management Service (economics) Service provider Service science, management and engineering Service level agreement Technical support Web service References Further reading Managed Services in a Month, 2nd edition. Great Little Book Publishing Co., Inc. 2013. The Guide to a Successful Managed Services Practice, January 2013. Intelligent Enterprise.