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Ups and the Downs of MSPs Part I: Growth

There are two main characteristics that make managed services an undeniably unique business arena right now: growth and pricing. First, let's focus on growth.

The managed services space has tended to grow in size and scope despite a down economy. This statement seems (statistically anyway) like conventional wisdom to those who follow this IT market segment.

Now there's more evidence to suggest the validity of that wisdom. According to this study from the Insight Research Corporation, rapid changes in telephony and network preferences of businesses coupled with consumer use of computer-scale mobile devices, will make managed services grow exponentially.

Specifically, the report says that the managed-services market will grow at 12 percent per year through 2015.

"Enterprises can no longer hire staff to keep up with technology changes that require them to adopt a new strategy, and managed services fits the bill," said Robert Rosenberg, Insight Research president, in a prepared statement accompanying the report.

Rosenberg's company predicts that the total U.S. managed services market will grow from $29 billion in 2010 to $47 billion in 2015. Further, individual segments of the managed services market, which include network support services, Web hosting and design, business continuity, application implementation and maintenance and fully outsourced IT functions, will grow 10 percent to 20 percent in that same time span.

Posted by Jabulani Leffall on March 11, 2011 at 11:57 AM


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