Managed Services Growing at Double-Digit Rates

The managed services segment is already huge and will continue to grow at double-digit rates over the next four years as business demand increases for reliable IT and telecommunications alternatives to fixed costs, according to a new report by Insight Research Corporation.

The Insight report, released earlier this week, pegs the 2013 global managed services market at $152 billion. In the U.S., businesses ranging from enterprise to SMB will spend $34 billion managed IT and telephony services. Over the next four years, managed services spending will increase 11.6 percent annually. In the U.S., the market will balloon to $51 billion.

“A large percentage of business activity now depends on the Internet for everything from electronic commerce to intranet applications to customer service. These data applications are driving exponential traffic growth onto corporate networks, while increasing their complexity,” said Fran Caulfield, Research Director for Insight Research. “Managed Services allow corporations to handle this growth, while outsourcing the most complicated elements to the skilled service provider.”

The Insight study covers everything from basic voice and data transport services to managed networks and endpoints to security services – essentially the full spectrum of managed service offerings.

While Insight’s managed services report is optimistic, there is a chance that the estimate is actually low. As more cloud services fold into the managed services category, and more vendors and solution providers automate applications, infrastructure and back office delivery, the managed services market could swell even higher by the end of the decade.



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