LONDON, April 25, 2016 /PRNewswire/ -- The State of Managed Services in South Africa : What are the Key Trends Shaping the Market?
Managed Services, one of the largest ICT cost components for South African enterprises, is an area that is poised for healthy growth over the next five years. However, the South African market is facing increased levels of competition with both local and global participants vying for key contracts. The greatest chance of success in this highly competitive and changing landscape will come to enterprises that anticipate and change to meet the market expectations. This project set out to investigate the Managed Services market in South Africa with the objective of understanding the emerging trends and key customer requirements
Introduction
Managed Services is a contested term globally. Businesses are buying and selling services up and down the supply chain, but not every service can be called a "managed" service. The South African market is no different, with little consensus as to what comprises a Managed Service. Frost & Sullivan defines Managed Services as the minimisation or elimination of the internal IT team and the transfer of responsibility of non-core, ICT-related business processes to service providers who deploy, support, and maintain these services. It is important to note that Managed Services are markedly different from outsourcing.
Outsourcing involves transferring the entire IT environment including all IT departments and activities to a service provider, whereas Managed Services refer to taking over a specific area of IT. Managed Services are typically provided for applications, networking, enterprise infrastructure, communications, and end-user computing. From 2008 onwards, Managed Services started to expand beyond the equipment-centric "break-fix" model and move towards services that are focused on increased collaboration between the provider and the customer. Today, as business technology solutions grow in number, complexity, and strategic importance, the role of the enterprise IT department is evolving. This has led to demands for greater accountability for meeting business goals as well as the increasing use of third-party vendors.
Thus, a Managed Service provider must not only satisfactorily perform a function (for example, networking or storage), but must incorporate tools and processes that allow customers and their partners to continually assess how well their goals are being met and make necessary changes. Owing to the current changes in the market, Frost & Sullivan set out to establish the current state of Managed Services in South Africa. A study was conducted covering six Managed Services service areas across eight key industries in South Africa
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