Managed service providers to see boom in post-coronavirus world: study

KEY HIGHLIGHTS

• 45% of organisations globally say they will outsource more over the next 18 months
• Cloud infrastructure outsourced to service providers is set to increase in 18 months to 77%
• Ability to drive outcomes related to cost, performance and agility crucial for MSP clients

Managed IT services providers could well see more work coming their way with nearly half of global organisations looking to outsource more over the next 18 months. According to a recent NTT Ltd commissioned report by IDG, nearly 61 per cent of the 1,250 respondents from various sectors, who came from a cross-section of IT and business leadership positions across 29 countries in USA, Europe, MEA, APAC and Australia, were outsourcing over 25 per cent of their existing IT work. Nearly 45 per cent of these global organisations are now looking to outsource more.

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Interestingly, the same study says that 37 per cent companies which are already outsourcing 25-50 per cent of their work could take a step back over the next 18 months where they are likely to outsource only 31 per cent of their work, whereas companies which have already outsourced 50 per cent or more of their work would further step up their outsourcing. Damian Skendrovic, executive vice president, Managed Services Go-to-market at NTT Ltd said , "During these challenging times, organisations move through a series of phases and are prioritising security as an initial response and recovery mechanism. They want more than a supplier." With organisations looking to reduce complexity on greater focus on operations, Damian points out that clients are looking beyond suppliers to find out partnerships that help them do smart things. "Service providers need to help them adapt now, but also help them bounce back quickly when the business environment reignites," he added.

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With the current pandemic normalising long-term work from home for many organisations, the report suggests that majority of organisations (55 per cent) turn to service providers for their ability to help 'reduce security risks' with value-added service they offer. Matt Gyde, President and Chief Executive Officer, Security division , NTT Ltd said for organisations their digital journey has fundamentally changed around how security is deployed, configured and managed. "The traditional perimeter security model is being questioned as we see the proliferation of end point devices. The rapidly growing digital footprint needs to be secured and is protected from a rise in malicious activity targeting the remote worker." As more organisations could take this as an opportunity to prioritise its transformation goals , the future looks strong for service providers across a number of core technology capabilities. The study shows that currently nearly 73 per cent of work around cloud infrastructure technologies and 53 per cent of work around IT security stand outsourced, which is set to increase to 77 per cent and 64 per cent, respectively over the next year and a half.

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