IT Cost and Complexity Driving Adoption of Managed Services

Slowing economic growth means that many business enterprises will turn to managed services, as opposed to increasing their own IT staff, according to Insight Research's latest study of the market. Global spending on managed services will increase at an annual compound rate of 14.7% over the next six years, according to Insight.

Revenues related to managed services will almost double over the next six years, increasing from nearly $140 billion in 2012 to $266 billion in 2016, according to NJ-based Insight's, "Managed Services in an IP World: Global Opportunities for Wireless and Wired Networks 2011-2016."

The shift to wireless and cloud-based services makes the information and communications technology market a standout in terms of growth prospects when looking across economic sectors. The increasing complexity, capital spending and expenses associated with this shift will drive managed services revenue growth rates higher, according to Insight research director Fran Caulfield.

"As enterprises shift their applications to the cloud and as more users access these applications via mobile devices, the level of complexity involved in managing these moving targets increases," she stated. "Buying a suit of Managed Services can get the enterprise around the complexity-the local IT manager can outsource the most difficult tasks to a service provider, and probably get the job done faster and at a lower cost."

As the complexity of IT grows both for your own network and your customer's, managed services provides a path for efficiency and cost savings.

Written by Kevin Kutcher at 00:00
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