MSP Today Expert Feature
December 05, 2011

Insight Research Study Says Global Businesses Spending on Managed Telecommunications Services Sits at $140 Billion in 2012

A new study from Insight Research, market research firm for telecom industry, found that global business spending on managed services will increase at annual compounded rate of 14.7 percent. This is in spite of the fact that all telecommunications services will see a single-digit growth rate in the coming six years. The cost-effectiveness of investing in managed services is one of the leading factors behind the double-digit growth rate being predicted for the managed services sector. An increasing number of enterprises are backing off from investing in basic telecommunications and IT services during the slow economic growth period and prefer investing in managed services as opposed to expanding their internal staff.

The study from Insight Research has forecasted that managed services market revenue is expected to double from the current $140 billion in 2012 to $266 billion 2016. The market analysis report titled, "Managed Services in an IP World: Global Opportunities for Wireless and Wired Networks 2011-2016" covers the regions of North America, Latin America, Pacific Rim, Europe, Middle East, Africa and Asia. The new study provides forecasts for five different segments of the managed services sectors. These include managed data center services and managed LAN services, managed infrastructure, managed WAN services, as well as managed mobility services.

Along with providing revenue forecasts for the five different market segments, the new study from Insight Research also provides forecasts for a number of different market subdivisions which include managed IP VPNs and security services, VoIP, LAN extensions and WLAN extensions, as well as managed cellular services, hosting and cloud services.

In a release, Fran Caulfield, Research Director for Insight Research, said, "Stability has returned to the telecommunications industry and with the continued shift to wireless and cloud-based services we are forecasting strong revenue growth in the managed and outsourcing services segments. As enterprises shift their applications to the cloud and as more users access these applications via mobile devices, the level of complexity involved in managing these moving targets increases. Buying a suite of Managed Services can get the enterprise around the complexity-the local IT manager can outsource the most difficult tasks to a service provider, and probably get the job done faster and at a lower cost.”

Calvin Azuri is a contributing editor for TMCnet. To read more of Calvin’s articles, please visit his columnist page.

Edited by Rich Steeves