Managed Services Options Growing for Enterprises

By Dennis McCafferty  |  Posted 01-07-2013
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Managed Services Options Growing for Enterprises

Managed Services Options Growing for Enterprises

Market Entry  One half of channel firms say they now provide managed services either exclusively or as part of a broader business portfolio, up from four of 10 companies in 2011.

More value-added resellers, systems integrators and other channel firms are offering managed services for CIOs and other customers, according to recent survey research from CompTIA. Traditionally, concerns about revenue, staffing and the impact of cloud computing have led to a "go slow" approach here. While these barriers still exist, fewer of these firms consider them deal killers anymore. As for one indicator of quantified growth, the business-process outsourcing market is expanding at a compound, annual rate of 5.3 percent and is projected to reach $202 billion by 2016, according to IDC. "The managed services model is generating demand among end users," says Carolyn April, director of industry analysis for CompTIA, a nonprofit association for the IT industry. "The incidence of 'pure play' MSP is pretty low. It's still an added practice as part of an overall business. Many, if not most, MSPs continue to sell hardware and other infrastructure to their customers. They have to keep the part of the business that's paying the bills running while they slowly phase in managed services." Executives from an estimated 400 IT channel firms took part in the research.

Dennis McCafferty is a freelance writer for Baseline Magazine.


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