Shared Insight: Growth and Consolidation in the UK IT Services Market

Shared Insight: Growth and Consolidation in the UK IT Services Market

The UK IT sector continues to face a persistent and well-documented skills shortage. Government research indicates that around 50% of UK businesses have a gap in basic cyber security capability, creating an increasingly competitive hiring environment. As demand for experienced IT professionals outstrips supply, salary expectations have risen to levels that many organisations struggle to sustain.

At the same time, recent high-profile incidents, including the global CrowdStrike outage, have reinforced a critical reality: businesses cannot afford to operate without resilient IT infrastructure and effective incident response capabilities. The cost of underinvestment is now as significant as the cost of in-house resourcing.
It is within this gap between operational necessity and economic constraint that the managed IT services market has continued to scale.

For a predictable monthly retainer, managed service providers (MSPs) offer flexible, outsourced IT solutions, allowing organisations to access enterprise-grade capability without maintaining large in-house teams. From early-stage businesses to multinational corporates, MSPs enable companies to tailor support levels in line with growth, complexity and risk profile.

Services typically span IT strategy, procurement and infrastructure management through to cyber security solutions such as network protection, endpoint security and managed detection and response. In doing so, MSPs play an increasingly strategic role in enabling business continuity, scalability and digital resilience.

The UK’s Fastest-Growing Managed IT Service Providers

Below are the fastest-growing managed IT services businesses in the UK, ranked in ascending order by percentage increase in headcount based on their latest available financial statements.

10. Bridewell Consulting
Established: 2017 | Location: South East
Headcount Growth: 74.2%
Bridewell Consulting enters the top ten following a strong period of growth, including acquisition activity and recognition across multiple high-growth rankings. Operating as a managed security service provider (MSSP), Bridewell delivers penetration testing, data protection services and technology risk assessments. Headcount increased from 97 to 169 employees, representing growth of 74.2%.

9. Air IT
Established: 2005 | Location: East Midlands
Headcount Growth: 76.8%
Air IT provides managed IT support, consultancy and cyber security services. Since its acquisition by August Equity in 2020, the business has completed four bolt-on acquisitions, supporting both geographic and service-line expansion. Headcount increased by 76.8% between reporting periods.

8. Espria
Established: 2018 | Location: East of England
Headcount Growth: 77.1%
Espria specialises in managed IT services and digital transformation, with a particular focus on cloud computing. Following the acquisition of Cambridge-based eacs in 2022, the business has continued to scale across sectors including legal, retail, healthcare and the public sector, increasing headcount by 77.1%.

7. BSL IT
Established: 2016 | Location: East Midlands
Headcount Growth: 82.6%
Based in Northamptonshire, BSL IT delivers managed IT support and consultancy alongside hardware, software and office supply procurement. Featured in the Tussell Tech 200 high-growth list in early 2024, the business recorded headcount growth of 82.6%.

6. Snowden Consulting
Established: 2012 | Location: East of England
Headcount Growth: 83.3%
Snowden Consulting focuses on Microsoft Dynamics 365 consultancy and managed services. The business experienced accelerated hiring between 2020 and 2023, with headcount increasing by 83.3% across its two most recent comparable reporting periods.

5. Cwsi (UK)
Established: 2012 | Location: South East
Headcount Growth: 100%
Cwsi (UK) is a cyber security specialist providing consulting, managed IT services and unified endpoint management. A member of the Microsoft Intelligent Security Association, the business has featured in Deloitte’s EMEA Fast 500 and doubled its workforce over the past year.

4. ANS Group
Established: 1996 | Location: North West
Headcount Growth: 100.3%
ANS Group supports organisations with IT strategy, digital transformation and ongoing managed services. Founded in 1996, it is the longest-established business in the top ten and has increased headcount from 300 to 601 employees, representing growth of 100.3%.

3. Babble Cloud
Established: 2001 | Location: London
Headcount Growth: 102.6%
Babble provides cloud, IT support, cyber security and communications services. Alongside a 102.6% increase in headcount, the business has grown turnover from £38.7m to £50m, reflecting strong demand for integrated managed IT solutions.

2. Quorum Cyber Security
Established: 2015 | Location: East of Scotland
Headcount Growth: 119.2%
Quorum Cyber Security delivers managed detection and response, incident response and cyber security advisory services. Following an equity investment from US private equity firm Charlesbank in June 2024, the business recorded headcount growth of 119.2%.

1. Nordcloud
Established: 2014 | Location: London
Headcount Growth: 205%
Nordcloud specialises in cloud consulting and managed services, supporting organisations with cloud migration and optimisation. Acquired by IBM in 2021, the business increased headcount by 205%, from 40 to 122 employees. Nordcloud holds triple certification across AWS, Microsoft and Google Cloud platforms, reinforcing its position as a leading multi-cloud specialist.

GS Verde Group: Strategic Advice for Technology and IT Services Businesses
Beauhurst data continues to highlight strong growth across the UK IT services sector, driven by digital transformation, cloud adoption and sustained demand for cyber security solutions.

At GS Verde Group, we advise technology and IT services businesses through every stage of their growth journey. Our integrated corporate finance, legal, tax, accountancy and communications teams operate collaboratively under one roof, delivering end-to-end transaction support with clarity, speed and confidence.
We regularly support managed service providers and wider technology businesses with acquisitions, investment, ownership transitions and long-term growth strategies.

Related sector transactions:
Apollo Cloud acquires Xi Communications

Orbits IT Completes EOT

Further insight: The UK’s Fastest-Growing Companies in Managed IT Services - Beauhurst