Increment in managed services despite economic slowdown

According to a new market study conducted by Insight Research, expenditure on managed services is deemed to increase at a rate of 8 percent in the coming five years despite US economic slowdown.
Based on the report, the present recession may increase expenditure in telecommunications and IT market segments. This is due cost-effective managed services provided by third party firms compared to internal staffs.
The study reported that revenues related with the managed services industry will increase from approximately $30 billion in 2008 to $43 billion in 2013.


According to a market analysis report by Insight, “Managed Services in an IP World: New Opportunities for Wireless and Wired Networks 2009-2014”, several industries such as IT equipment vendors, system integrators, carriers and service provider will join in the growth opportunities in the market.


The report focuses on segmentation besides predicting five managed service segments future that includes managed data center services, managed infrastructure, managed LAN services, managed WAN services and managed mobility services.

Furthermore, forecasts for various market subdivisions, including managed security services, managed VoIP, LAN extensions, managed cellular services, WLAN extensions, managed IP VPNs, and a number of other significant areas within the managed services domain were also featured in the report.


The report also contains Insight's survey of managed WAN, outsourced managed LAN, and disaster recovery management services by vertical industry.

Insight’s President, Robert Rosenberg says, “"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.


Rosenberg concluded, “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.”

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