Did you know companies who move into a digital arbitrage mindset reduce spending year over year? Gartner analyst Brett Sparks shares why in CIO Dive via Suman Bhattacharyya. CIO GartnerIT
Economic uncertainty driven by inflation, a tight labor market and foreign-exchange pressures may push CIOs to rethink investment priorities, but demand for managed services is expected to continue to grow.
"With inflation and the possibility of a recession looming, we think we’re going to have more enterprises turning to outsourcing and managed services to lower their delivery costs,” he said. The IT services market, driven by investments in business transformation, cloud migration and managed services, is expected to grow 9.6% in 2022, Gartner said. That’s down one percentage point from the previous year’s growth. In 2021, it said the total IT services spend was $1.2 trillion.Companies plan to digitize operations, which will generate ongoing demand for managed services, including more-efficient IT strategies.
Commercial real estate firm Jones Lang LaSalle works with third-party MSPs and also acts as a managed service provider to other companies, offering real estate technology advisory services. It said demand for MSPs will likely remain consistent, though the focus might be different. Accelirate, a Sunrise, Florida-based managed service provider, helps firms get up and running with robotic process automation software UiPath through license management, implementation and support.
“Most mid-market organizations – for example, your local hospital down the street – they want the benefit of automation, but they don’t have the people or budget to make that investment,” he said. “All they need to do is set up a connection … and let that managed service provider drive automation as a service.”