Managed It Services, A Growing Trend In The Tech Industry
Today’s business landscape necessitates the increased reliance on technology to boost efficiency and productivity. Technology is also crucial in helping a business keep up with competitors or have the edge over them, such as the use of platforms and tools that provide a better customer experience. In addition to the general use of digital solutions, there’s also the increased migration of business processes to the cloud.
These technological demands and the drawbacks they bring to a business, including increased cybersecurity risks, higher costs of running the IT department, and the need for expert knowledge, can become overwhelming over time. This is among the top reasons managed information technology (IT) services have become a growing trend. This article looks at managed IT services and why it’s a growing trend in the tech industry.
What is managed IT services?
This is outsourcing IT services to a third party to manage, monitor, and support IT infrastructure, software, and hardware. These third parties often have a wide range of services, like managed infrastructure and networks, cloud, and security. Some providers offer full IT management services, while others only provide specialized services.
The cost of the services is usually as per a service level agreement depending on the extent of services you need, and it’s payable on a subscription basis. The main reason managed IT services appeal to many businesses is their benefits––scalability, availability, cost savings, and expertise.
Key elements driving the growth of managed IT services
The managed services market has seen steady growth over the past few years, with an estimated market share of USD$ 223 billion in 2020 and a projection to USD$239 by 2025. (1) Hence, it’s only natural to wonder what’s driving this growth. The following are the key areas that are pushing that growth:
- Increase in modern IT solutions
It’s no secret that technology is evolving at a fast pace. Developers are coming up with new offerings and solutions for improving efficiency in business processes and workflows. Emerging tech comes with a requirement for expertise in sourcing, implementation, and management. It can be challenging for in-house IT teams to keep up with the changes, especially if they’re also working on existing tech issues and trying to keep up with new trends and solutions.
Additionally, the changing business environment is also causing a rapid shift with trends like working with remote teams, which is gradually becoming the norm. This pushes businesses to outsource IT services to expert providers who can provide better solutions.
- Increased cloud adoption
Another key element driving the growth of managed IT services is cloud adoption. Cloud adoption offers numerous benefits, including business continuity if the physical premises are inaccessible. Most modern tech solutions, such as Enterprise Resource Management (ERPs) and Customer Communication Management (CCM) tools, are cloud-based. (2)
With many businesses implementing cloud adoption to keep up with the competition, store backup data, and enable workflow processes, the need for managed IT services providers grows. Whether a business is using Software as a Service (SaaS), Infrastructure as a Service (IaaS), or Platform as a Service (PaaS), using a managed service provider is the best way to help with the implementation and management of cloud services.
- Growing IT security concerns
Among the many concerns businesses face today, IT security tops the list. The increased use and reliance on technology in business processes and cloud adoption have exposed organizations to many security risks. Also, cybercriminals leverage tech advancement to penetrate and hack systems in the same way businesses use it to better themselves.
The increase in cyberattacks on businesses of all sizes makes it necessary for organizations to prioritize managed IT security services. The consequences of a cyberattack can bring any business to its knees. Engaging a managed IT services provider with expertise in security matters is one-way businesses can lower the risks. (3)
How managed IT services fill the gaps
A business comprises of a lot of functions, and the IT department is only one of them. However, it’s at the core of every other function by enabling communication and collaboration. Because of that, it can end up taking a lot of business resources. This makes it difficult for small and medium-sized businesses to compete fairly with bigger organizations, especially since the latter has the ability to hire and maintain top-notch IT experts and solutions.
Managed IT services help close the gap between small and large enterprises by providing expert IT services at affordable rates. As businesses shift from legacy software and infrastructure, managed IT services have become the much-needed bridge for a swift transition. Partnering with these service providers can also help lower the burden on businesses of trying to keep up with IT trends.
Instead, business owners and managers can focus their energy on other functions to boost business growth while leaving the experts to deal with IT matters. Different ways that managed IT services help fill IT gaps include the following:
- Access to skills that are unavailable in-house
- Allowing business owners and managers to focus on core business
- Lowering IT costs
- Improved flexibility and scalability of IT services
The complexity and fast evolution in technology are among the reasons there’s a growing trend in the adoption of managed IT services in the tech industry. Modern IT solutions, security concerns, and increased cloud adoption are among the top drivers of the growth trend. As technology trends evolve, this trend is likely to continue in the coming years.
- “Managed Services Market”, Source: https://www.marketsandmarkets.com/Market-Reports/managed-services-market-1141.html
- “Cloud Adoption Steadily Rising Across Industries, but Managing Cost Remains a Concern, New O’Reilly Research Reveals”, Source: https://www.businesswire.com/news/home/20211108005089/en/Cloud-Adoption-Steadily-Rising-Across-Industries-but-Managing-Cost-Remains-a-Concern-New-O%E2%80%99Reilly-Research-Reveals
- “MORE Alarming Cybersecurity Stats For 2021 !”, Source: https://www.forbes.com/sites/chuckbrooks/2021/10/24/more-alarming-cybersecurity-stats-for-2021-/?sh=99152454a360