B2B Service Provider GXS Reports Massive Revenue Growth from Managed Services Solution

B2B integration services provider GXS has reported a 20 percent increase in its Managed Services offerings for 2012. The figure has been adjusted for currency, and roughly relates to revenues of $179.4 million in 2012.

GXS introduced its Managed Services in 2004, and the offerings continue to help drive the company's success. The service provider also reported it had signed an additional 59 Managed Services accounts last year, bringing the total number of Managed Services customers to more than 600.

The company reported that revenue from its fastest growing solution, Managed Services, rose at a 23.6 percent compounded annual growth rate from 2009 to 2012, and comprised of about 37 percent of total revenues for the company in 2012. The GXS Managed Services solution is a B2B integration offering that offers customers support from skilled B2B specialists who assume day-to-day operations for them. This includes ERP integration, mapping, technical support and on-boarding.

The offering is cloud-based, which enables customers to scale and grow as necessary, as well as build their B2B networks. It is used by clients of all sizes to connect electronically with their customers, banks, suppliers, transportation carriers and business partners. Managed Services customers come from a number of industries, including retail and manufacturing, high tech, financial services and consumer products.

“GXS Managed Services enables customers to connect and automate the entire supply chain lifecycle without additional strain on their internal resources, leaving clients to spend time concentrating on the core areas of their business,” said Bob Segert, president and chief executive officer at GXS. “As the world’s largest cloud integration platform, connecting more than 550,000 global businesses, our continued investments in this area have positioned us at the forefront of the industry.”

“Managed services providers who are able to harness the massive amount of trading data processed on their networks into value-added services will be the growth leaders in this segment and will enable this category to continue its fast rate of growth," added Maureen Fleming, vice president of IDC's business process management and middleware research programs.