US Businesses Will Spend $237 Billion on Managed Telecommunications Services Over Five Years, Says Insight Research Corp.

Mar 10, 2011, 14:08 ET from Insight Research Corp.

MOUNTAIN LAKES, N.J., March 10, 2011 /PRNewswire/ -- While US business spending on wireline telecommunications services are expected to grow in low single-digit percentages over the next five years, spending on managed services is expected to grow at a compounded rate of 12 percent over the period, says a new market study from Insight Research.  The market research report notes that the present recession may actually act to spur spending in the telecommunications and IT market segments, since many enterprises will find that purchasing managed services from third-party providers is a cost-effective alternative to increasing internal staffing. The spending study predicts that revenues associated with the managed services market will grow from nearly $29 billion in 2010 to $47 billion in 2015.

Insight's newly-released market analysis report, "Managed Services in an IP World: New Opportunities for Wireless and Wired Networks 2010-2015," contends that carriers, service providers, IT equipment vendors, systems integrators, and specialist companies will all participate in the growth opportunities provided by this market.

The study differentiates and forecasts five managed service segments: managed data center services, managed infrastructure, managed LAN services, managed WAN services and managed mobility services.  In addition to the revenue forecasts for these market segments, forecasts are provided for various market subdivisions, including managed IP VPNs, managed security services, managed VoIP, LAN extensions, WLAN extensions, managed cellular services, and a number of other significant areas within the managed services domain. The report also provides Insight's survey of outsourced managed LAN, managed WAN, and disaster recovery management services by vertical industry.

"Make no mistakes about it, while telecom is faring better than many other segments of the economy, anemic growth in the overall economy required that we adjust our annual managed services forecasts downward," says Robert Rosenberg, Insight's president. "Little or no job growth is a silver lining for the managed services providers, since enterprise IT and telecom managers will be much more willing to listen to the economic logic of outsourcing now that internal staffing is contracting," Rosenberg concluded.

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SOURCE Insight Research Corp.