"After the initial delivery of onsite managed services, the market started to transform to a hybrid of offsite services delivery either through Remote Infrastructure Management (RIM) or a combination of RIM services and onsite delivery," said Saha.

Initially, managed services were mostly adopted by large enterprises but now more small and medium businesses (SMBs) are using them because of competitive pressures and operational concerns.

Corporate giants have skilled internal IT teams that can support day-to-day operations but the SMBs don't have this luxury and they prefer to adopt the managed services model in a phased manner.

Today, SMBs are very keen on using managed network services, workplace management services and managed server services, according to the report. Banking, financial services and insurance (BFSI) organisations are the largest contributors to the managed IT services market and they are followed by the manufacturing and government verticals.