GRAND RAPIDS – A new acquisition in Grand Rapids highlights a growing shift in Michigan’s technology sector: smaller IT service providers are joining forces as cybersecurity threats intensify, client expectations rise, and skilled talent becomes harder to find.

Hungerford Technology, a managed IT provider serving West Michigan, announced April 16 it has acquired RGA Tech Support, a Grand Rapids-based IT services firm. While the deal itself is relatively small, it reflects a much larger trend reshaping the managed services industry both regionally and globally.

“This decision was about people first,” said Matt Clarin, president of Hungerford Technology. “As IT becomes more complex, having the right team in place is critical.”

That “people first” message, common in acquisition announcements, is also a signal of deeper pressures facing the industry.

A Rapidly Expanding Market

The global managed services market is booming, driven by businesses outsourcing IT operations they can no longer handle internally.

The market was valued at roughly $401 billion in 2025 and is expected to nearly double to more than $847 billion by 2033, reflecting sustained growth of nearly 10% annually.

At the same time, overall IT spending continues to surge. Gartner forecasts global IT spending will reach $6.08 trillion in 2026, up nearly 10% from the previous year.

But the fastest-growing segment isn’t hardware or software—it’s services.

Organizations are increasingly turning to outside providers not just for cost savings, but because they lack the internal expertise to manage modern IT environments.

Cybersecurity Is Driving the Shift

At the center of this consolidation trend is cybersecurity.

Global spending on information security is projected to hit $240 billion in 2026, according to Gartner, as organizations race to defend against increasingly sophisticated attacks.

The stakes are enormous. Cybercrime damages are expected to reach $10.5 trillion annually, making it one of the largest economic threats facing businesses worldwide.

That risk is pushing companies—especially small and mid-sized businesses—to outsource IT and security functions to managed service providers (MSPs) that can deliver 24/7 monitoring and specialized expertise.

“Organizations simply cannot hire and retain enough cybersecurity talent,” Gartner analysts have noted in recent market guidance, pointing to outsourcing as a primary solution.

Talent Shortage Becomes a Deal Driver

The Hungerford-RGA deal also reflects a second major force: workforce shortages.

Across the MSP industry, hiring skilled IT and cybersecurity professionals has become one of the biggest challenges to growth. Recent industry reports show talent constraints are now a top concern for providers, even surpassing technology limitations.

That reality is changing how companies expand.

Instead of hiring one employee at a time, firms are increasingly acquiring entire teams.

“This acquisition brings together two teams with a shared approach to supporting clients,” Clarin said, underscoring the importance of workforce scale.

Grant Austin, owner of RGA Tech Support, said the move allows his team to continue serving clients while gaining access to broader resources.

“Hungerford Technology shares our values around relationships and responsiveness,” Austin said. “This gives us additional support behind us.”

Smaller Firms Face Growing Pressure

For independent IT providers, the environment is becoming more difficult.

Clients now expect:

  • Advanced cybersecurity protection

  • Cloud infrastructure expertise

  • AI and automation integration

  • 24/7 uptime and monitoring

Delivering all of that requires scale, investment, and specialized talent—resources that smaller firms often lack.

Industry analysts say this is accelerating consolidation.

Managed security services alone are projected to grow at more than 11% annually through 2030, driven by demand for continuous threat detection and response.

“CISOs cannot hire fast enough, so they buy capacity instead,” one market analysis noted, highlighting the shift toward outsourced services.

A Local Reflection of a National Trend

What’s happening in Grand Rapids mirrors a broader national—and global—pattern.

Managed service providers are evolving from basic IT support firms into strategic partners that handle cybersecurity, compliance, cloud operations, and increasingly, AI deployment.

At the same time, competition is intensifying. Industry data shows customer acquisition is now the top concern for more than 70% of MSPs, as businesses become more selective and demand higher levels of service.

That combination—rising demand, rising expectations, and limited talent—is pushing companies toward mergers and acquisitions as a faster path to growth.

What It Means for Michigan Businesses

For Michigan companies, especially small and mid-sized firms, the shift has real implications.

On one hand, consolidation can lead to stronger service providers with deeper expertise and broader capabilities.

On the other, it may reduce the number of independent IT vendors in the market, potentially limiting choice over time.

For now, however, the immediate impact is likely positive: more resources, more advanced services, and greater capacity to handle cybersecurity threats.

Hungerford Technology said clients should expect a smooth transition with no disruption to current services, and the combined organization will continue focusing on both day-to-day IT support and long-term planning.

The Hungerford Technology acquisition of RGA Tech Support is not just a local business deal—it’s a clear signal of where the IT services industry is heading.

As cyber threats grow, technology becomes more complex, and talent remains scarce, managed service providers are scaling up—often by joining forces.

For Michigan’s tech ecosystem, that means one thing:

More consolidation is coming.