Spending On Managed Services Increasing Despite Recession
Published on: 5th Feb 2009
Note -- this news article is more than a year old.
Despite the slowdown in all US economic sectors spending on managed services is expected to grow at a compounded rate of nearly eight percent over the next five years says a new market study from Insight Research. The report notes that the present recession may actually act to spur spending in the telecommunications and IT market segments since many enterprises will find that purchasing managed services from third party providers is a cost effective alternative to increasing internal staffing.
The study predicts that revenues associated with the managed services market will grow from nearly $30 billion in 2008 to nearly $43 billion in 2013.
The study differentiates and forecasts five managed service segments: managed data center services, managed infrastructure, managed LAN services, managed WAN services and managed mobility services. In addition to the revenue forecasts for these market segments, forecasts are provided for various market subdivisions, including managed IP VPNs, managed security services, managed VoIP, LAN extensions, WLAN extensions, managed cellular services, and a number of other significant areas within the managed services domain. The report also provides Insight's survey of outsourced managed LAN, managed WAN, and disaster recovery management services by vertical industry.
"Make no mistakes about it, while telecom is faring better than many other segments of the economy, the recession is certainly having a negative impact on growth, which required that we adjust our annual managed services forecasts downward," says Robert Rosenberg, Insight's president. "However, this storm does have a silver lining for the managed services providers, since enterprise IT and telecom managers will be much more willing to listen to the economic logic of outsourcing now that internal staffing is contracting, " Rosenberg concluded.