Outsource the IT Department: The Growing Demand for Managed Services

manged-service-chartManaged services are without a doubt a legitimate approach for cost savings in IT. As demand for networking and other high technology needs increases, and small to medium-sized businesses (SMB) must scale and adapt to web-enabled competition without having much capital, businesses must find ways to shrink IT budgets without sacrificing quality of service. Fortunately, countless managed service providers, both large and small, have set out to fill this growing need.

A study by respected IT trade-association CompTIA in 2011 showed that that savings were being realized nearly across the board with firms that decided to switch their IT services over to a managed service provider. 46% of the firms chosen for the study cut IT expenses by 25% or more while 13% managed to cut their tech budgets in half. What is also significant about this study is that 62% of the organizations surveyed planned to make greater investments in managed services over the next two years.

Flash forward nearly two years later, and we are still seeing firms express interest in expanding their managed IT adoption. Research firm In-Stat has published a recent study of medium to large-sized businesses that reveals that there is a growing desire to increase managed service usage in order to keep up with the complexity of modern network capabilities. This is especially true in the realm of telecom, in which 40% of companies are expected to outsource phone systems within the next two years. Also, within those same two years managed service adoption rates for security, storage, and hosting will roughly double.

We can rest assured that service providers are stepping in to fill this need. Another set of recent findings from CompTIA shows that roughly half of IT channel firms include managed services as part of their business model.

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