In the traditional information technology universe, systems integration and consulting companies thrived. These companies assisted organizations across nearly every industry in assembling a myriad of proprietary systems from a broad spectrum of software and technology providers. Despite the introduction of the cloud and all its promises, things have really remained the same in this regard. The following is the managed services prognosis for 2021 according to the trends.
The need to create customized software solutions and integrate databases from different applications has continued to increase through all the innovation. The demand for IT services has also increased along with these needs.
Spending on IT services globally in 2018 was in excess of US$1 trillion, representing a 5% increase year over year. Much of the growth was a result of rising customer expectations and increased competition across virtually every industry. IT services are desperately needed to help companies in updating their current software and legacy systems to keep up with the market, but also to pursue their unique goals and objectives for digitally transforming their business.
There are several key differences in contemporary IT service requirements that differ from those of the past.
Higher Expectations
When the systems integration services market arrived 30 years ago, organizations became resigned to the fact that the challenge of dueling proprietary technology and software was necessary, even if it was problematic. Decades later, open source software and application programming interfaces have the ability to interoperate with one another – but clients need help making it all work. Because of this, systems integrators were driven to provide a new set of value-added services which represent their offering to the broader marketplace.
Although the practice was common in the past, decisions-makers in today’s corporations are often averse to handing over their entire IT network to a third-party in a multiyear outsourcing deal. Corporate executives often consider their IT networks and operations as strategic assets that shouldn’t be trusted to others outside the organization. Instead, they look for short term project help and consulting support through integration processes.
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Upcoming Trends
Changing attitudes towards IT services assisted in bringing about a new class of cloud-centered professional services firms over the past decade. This agile class of companies have concentrated on short-duration projects aimed at helping their clients capitalize on the latest Software as a Service, Platform as a Service and Infrastructure as a Service innovations and alternatives.
Managed services will still provide enhanced security, ROI, cost-savings and access to newer technologies to SMBs who would benefit from the economies of scale. Larger organizations may have outgrown the need for managed services for ongoing and long-term projects, but SMBS still can optimize their resources by turning to managed services firms.
If you are an SMB who is looking for cost savings and efficiencies in your IT network, consider this managed services prognosis for your company’s needs. For those who still struggle with an overworked team, a skills gap in their IT department, security nightmares, and ongoing budgetary concerns – managed services may be the best solution. Call Alliance IT today for more information.
