Managed Services Market to Accelerate with “Smart Sourcing”

NTT Ltd., collaboration, IDG Research, survey, market study, IT market, COVID-19, coronavirus, 2020 Global Managed Services Report, managed services, IT service, COVID-19 crisis, smart sourcing, outsourcing, Managed Services Market, BPO, business outsourcing, digital transformation, IT professionals, IT team, remote work, business innovation, Technical expertise Automation, security system, financial stability, Damian Skendrovic, Managed Services, Go-to-market, business partnership, MSPs, security risks, IT in-house, data security, macroeconomic marketplace, IDG, cloud infrastructure, expertise, UK, UK organization, UK IT firms, business continuity, business growth, security, governance, compliance, UK security practitioners, IT engineers, security jobs, IT jobs, cloud, Google cloud, IT expert, business challenges, world economy CEO, CIO, CISO, CTO, IT, Managed service, Technology, Cybersecurity, Engineering, Remote work, Information security
Managed Services Market to Accelerate with Smart Sourcing

More organizations are aiming for smart sourcing to keep afloat amid the uncertain business landscape

Under the COVID led this crisis period, IT professionals are under massive pressure while handling the logistics of remote working. The latest report from NTT Ltd., in collaboration with IDG Research, titled “2020 Global Managed Services Report” has highlighted the value of “smart sourcing” – as more businesses are confronting new threats and challenges concerning security credentials and technical expertise. More than 1,250 business leaders and IT experts globally have been surveyed to understand the challenges and opportunities around IT services.

IBM X-Force Study – Coronavirus-themed Spam Records 14,000% Spike

As per the report, nearly 47% of the UK security practitioners and IT engineers have been forced to redeploy from their typical security jobs. And this has left many organizations with high vulnerability rates and resultant security risks. Hence, organizations are looking for ways to recover and keep up amid the changing business ecosystem. As a result, the service providers are on notice to lift their value and, currently, “smart sourcing”helping companies to rise above the disruption – holding the ability to provide desired business outcomes. The managed services market is projected to increase from $223 billion to $329 billion – over the next five years.

As mentioned in the report, “Organizations crave technical expertise and flexibility, helping to scale up or down, dependent upon the enterprise needs. Above all, service continuity is critical, along with security, governance, and compliance. From an internal perspective, now more than ever is IT’s time to forge stronger relationships with the business. Like many things, we expect to simply just ‘be there and work’, IT can be taken for granted, but is essential to our working existence.”

While choosing a service provider, technical expertise is the primary criterion for any business to consider. Outsourcing will play a crucial role and help the UK-based organizations to function with any other experienced firm. The established IT companies can help them recover and adjust with the modern macroeconomic marketplace where they operate in – to ensure business continuity and growth. As per IDG, cloud infrastructure expertise (73%) and security skills (53%) are currently leading the way for technologies that are being outsourced to different service providers.

The principal findings from the report are –

  • Security tops the priority list for organizations. Nearly 57% of respondents reported that security risks as a significant challenge for managing IT in-house. Both security and governance are responsible for the enhanced services to meet the client’s requirements.
  • The transformation has been reimagined – smart sourcing allows IT professionals to focus more on digital transformation and business innovation. About 48% said that they need to optimize their work to cope up with the demands for an evolving workforce.
  • Technical expertise, along with high service provision, helps to grow trust. As stated in the report, “Organizations feel MSPs will provide the most value over the next 3-5 years through their security capabilities (44%), financial stability, trust and reputation (43%), and automation (43%).”

Coronavirus Pandemic – Public Clouds May Struggle To Keep Up with High Demand

Clearly, it is now crucial more than ever for the service provider to shift from outsourcing to smart sourcing! According to Damian Skendrovic, Exec. VP, Managed Services Go-to-market at NTT Ltd., “Businesses will be able to rise above disruption and navigate the new normal through the power of the right partnerships…While siloes will always exist, the bigger picture is more important. The relationships with those outside our normal scope will deliver far-reaching outcomes to help restore organizations.”