On August 21, America News Hour reported on a study outlining the growing demand for IoT platforms and other IT related managed services across the industry. As companies adopt more smart connectivity devices for the transmission and collection of their important data, the need for secure and current technology is driving more and more organizations towards the managed services growth model.
Fast Fact: The global IT managed services market accounted for USD 149.41 Billion in 2016 and is expected to reach USD 262.5 Billion by the end of 2023.
Managed Services Growth for All Size Business Operations
In 2016, the large enterprise segment comprised of the highest market share in terms of revenue. Because managed services represent a way to grow exponentially, secure data and manage overhead costs, large enterprises initially flocked to the solutions and created a massive market.
However, as evidenced through organizations such as Alliance It, the small to medium sized business market is catching up in their understanding of the ease of operation, cost savings, and ability to access state-of-the-art technology. These are available without the traditional problems of obsolescence, under-utilization, ongoing tech training and soaring costs, allowing the growth we’ve seen expanding across every size company and operation.
Growing Need for Security & Management of Customers’ Data
The managed services market worldwide is enjoying growing popularity, especially in sectors such as education, manufacturing, healthcare and retail. This is due to organizations realizing the challenges of keeping up with a market moving at rapid speed.
Growth of Cloud Computing in IT Industry- Cloud computing is growing by leaps and bounds in both private and government agencies. This adoption of cloud computing raises issues of technology and software upgrades, budgetary considerations, security and compliance issues, and more.
Rapid Pace in Digitalization- Growing digitalization in all aspects of global business, and adoption of IT-based services are enhancing customer experience due to increased operational efficiency. Customers simply demand real-time, fast and responsive transactions around the clock, from anywhere in world, making it difficult for small to medium sized businesses to keep up without some form of outsourcing.
Privacy and Security- The concerns surrounding cyber crime, malware, data breaches and other security issues is only growing by the day, as hackers grow more sophisticated. As attacks more and more attack and mimic the processes and platforms users are familiar with, more clever ways of identifying and stopping them are needed. Managed services companies can provide dedicated teams of experts who monitor these activities and are ware of current threats.
High Expenditure Cost- Next to security issues, small to medium sized businesses struggle with keeping up to date with the complexity of IT technology. Whether budgeting for constant upgrades, experiencing situations where servers are under-utilized, or trying to juggle IT professionals with too much on their plate – the exploding growth of managed services can be attributed to all of these challenges. It budgets are limited and it is not possible to continually hire new experts or obtain new technology, but managed services allows for access to the latest and greatest, at a shared cost.
It is expected that security and budgetary issues will continue to encourage small to medium sized businesses to seek out the assistance of local managed services firms. With local expertise, face-to-face relationship, state-of- the-art equipment and 24×7 support, the model will continue to provide the solutions which make sense for all sized business operations.
Alliance IT provides managed services to Sarasota area businesses of all sizes.
