Managed Services Model Continues to Spread

The managed services approach to meeting IT needs is continuing to grow at a rapid pace in the United States.  Currently, at least 20% of small business enterprises use managed services for some aspects of their information systems, with business of at least 50 employees even more likely to use managed services.  More than half of medium-sized enterprises have adopted the managed services model for at least some of their IT support needs.

The reasons for this trend are several, with some of them rooted in the current economic climate while others are firmly based in the nature of managed services themselves.  By providing remotely monitored solutions for many IT needs, the managed services model naturally creates a situation in which fewer enterprise staff are needed to oversee information technology at the company's central or branch locations.  This in turn reduces costs, since managed services providers are able to leverage economies of scale to offer key services more inexpensively than companies could manage to provide themselves. 

The recent economic downturn has also led many businesses to turn to hosted services as a way to avoid hiring workers during uncertain times.  It is expensive to recruit and train a new hire, and enterprises are also wary of creating a new position when they may wonder if the position will still exist a year later, particularly when it may cause the new hire to relocate to a new area of the country.  Hiring a managed services provider instead eliminates these concerns but still allows enterprises to have access to the IT expertise they need to grow their businesses.


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