And there’s some new data on IT services.
The new State of the Channel 2025 from the Global Technology Industry Association reveals that the demand for artificial intelligence and cybersecurity is creating significant opportunities in the channel market, despite ongoing economic challenges. Global IT spending is projected to rise by nearly ten percent in 2025, reaching approximately five point six trillion dollars, with IT services expected to increase by nine percent to one point seventy-three trillion. The report indicates that almost sixty percent of surveyed companies see the growing complexity of technology as a key driver for channel demand. Notably, half of North American channel firms anticipate robust sales growth driven by artificial intelligence in the next two years, surpassing cybersecurity as the leading revenue growth area. However, challenges remain, including skills shortages, which are cited by thirty-seven percent of firms as a major concern. Additionally, forty-four percent of respondents highlighted external economic factors as significant worries. This data comes from a survey conducted in December 2024 with over one thousand channel company executives.
A survey conducted by ScalePad reveals how leading managed service providers distinguish themselves in a competitive market. The survey highlights that 85 percent of top providers prioritize customer satisfaction, while 72 percent invest heavily in employee training and development. Furthermore, the report indicates that these MSPs are more likely to adopt innovative technologies, with 68 percent implementing cloud-based solutions.
A recent survey by SolarWinds reveals that only 23 percent of IT professionals believe their current budget is sufficient to meet their organization’s needs. This concern is exacerbated by economic uncertainty, with 43 percent of respondents identifying budgetary issues as their biggest challenge this year. The survey, which included 272 global IT professionals, highlights that nearly half of the participants struggle to justify their expenses to upper management, with 28 percent having budget requests denied in the past year. Looking ahead, 43 percent anticipate that budget constraints will continue to be a significant challenge through 2025, particularly in crucial areas like cybersecurity. Furthermore, 40 percent of respondents find it increasingly difficult to plan IT spending accurately due to global volatility and supply chain disruptions affecting hardware procurement costs.
IT workers face unprecedented challenges, costing employers an average of seven thousand eight hundred dollars annually in lost productivity due to recurring tech issues. A report from Liquid Web reveals that each IT professional deals with about one hundred and forty-four technical problems each year, with each incident costing around fifty dollars. One in ten professionals report being asked for troubleshooting help multiple times a day, and in-office staff encounter significantly more issues compared to their remote counterparts. Despite these hurdles, nearly seventy-five percent of IT professionals believe their teams effectively address daily frustrations. The report highlights that the real estate industry suffers the most tech problems, averaging four issues a week, while digital marketing reports the least, with just two.
Why do we care?
This reinforces key trends driving the IT services industry in 2025: AI overtaking cybersecurity as the primary growth driver, budget constraints limiting IT investment, skills shortages threatening expansion, and IT inefficiencies costing businesses billions.
IT spending is increasing, but budgets are tight. Clients need ROI-driven services, and MSPs should help justify their value. Focusing on solving those technical issues which continue to persist is significant. $7,800 annually per employee.
Skills shortages are a major problem. The ScalePad report shows that 72% of top MSPs prioritize staff training. Retaining skilled employees will define success. And as we heard earlier, the labor market alone won’t solve this.
Investing in automation and employee development will separate leading MSPs from struggling ones.
