What are Managed Services?
Managed services aid in enhancing core business operations and reducing organizational expenditure because they are handled by external service providers. Managed services consist of a wide range of services that help in monitoring, regulating, and improving the IT infrastructure of an organization. They offer the advantages of cost containment and reduced inventory. They are required by organizations to develop an economical cost structure and minimize expenditure.
The Global Managed Services Market can be broadly categorized into five segments:
- Managed Data Center Services
- Managed Infrastructure Services
- Managed Network Services
- Managed Security Services
- Managed Mobility Services
Increased Need for Operational Efficiency
Many companies are witnessing M&A and expansion in their services because of the increased need to improve in EBIDTA and reduce operational costs. Major industry verticals such as telecom operators are increasingly focusing on increasing their operational flexibility to meet the fluctuating demands of the market.
Managed services help telecom operators to stay focused on their core business rather than on the ongoing management of networks and systems. These services allow operators to allocate resources to product enhancement and innovation and to focus on revenue-generating activities.
Managed IT service vendors are increasingly focusing on meeting deadlines and providing technical solutions to operators to develop efficient and streamlined internal processes that would eventually build a smooth operator-vendor working relationship.
Demand for 24/7 Services
Business expansion involves a high level of customer satisfaction and traveling. Mobile workers use the BYOD policy, which allows access to company data anywhere and anytime. However, it may become expensive for enterprises to maintain applications and data over mobile devices 24/7.
Hence, outsourcing would seem a cost-effective method, especially because service providers work in a different time zone. This would also enhance the productivity of the mobile workforce.
Increased Need for Data Center Services
The increased use of data centers at an organizational level can be attributed to the proliferation of data generation, which increases the need for dedicated services and solutions for building, maintaining, and supporting the IT backbone. These services comprise hosting, server consolidation, and business continuity services.
Managed services help customers to efficiently manage their hosting and telecommunication requirements, thus enabling them to build a reliable, flexible, and robust infrastructure. Some of the services such as dedicated web hosting, remote storage and management, and server migration and compliance services are of vital importance to enterprises. With the growth of the overall IT infrastructure, companies are increasingly adopting managed services.
Need to Reduce IT Spending
The cost of hiring specialized staff is high because of the specific expertise required per IT function. Therefore, enterprises choose managed service providers, which allows them to focus on their core competencies, thus enhancing competitiveness, generating revenue from new businesses, and streamlining existing business processes.
Also, before defining a core activity a business undertakes a cost-benefit analysis to understand the cost incurred by a process and the benefit it provides to an organization.
