Codestone

Category: Support & Managed Services

A growing number of companies are to invest in managed services and outsourced IT in the coming months due to the financial benefits it provides.

This is according to analysis from Pyramid Research, which suggests that a larger proportion of technology budgets will be spent on IT support services in the next 18 months as businesses seek to position themselves for future growth.

According to the report, the key reasons for this trend include the capital expenditure cost reductions offered by outsourced IT, which can help to provide a competitive advantage.

In addition, firms now have more trust in the "value and reliability" of services offered by vendors, meaning they have become seen as a sound investment during the recession.

Denise Culver, analyst at large at Pyramid, said: "While growth in revenues from traditional businesses continues to slow down and in some instances declines, operators and vendors alike can expand their managed services offerings to replace that lost revenue."

This month, the UK's Serious Organised Crime Agency agreed a new IT outsourcing deal that will allow it to improve its efficiency while saving money.

Posted by Victoria Browne