Insight Research: Managed Business Services a Golden Opportunity for Telecom Providers

MOUNTAIN LAKES, NJ - Although U.S. business spending on wireline telecommunications services will increase slowly 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 report notes that the recession may actually spur spending in the telecommunications and IT market segments, because many enterprises find purchasing managed services from third-party providers a cost-effective alternative to increasing internal staffing.

The managed services market will grow from nearly $29 billion in 2010 to $47 billion in 2015, according to Insight Research.
Carriers, service providers, IT equipment vendors, systems integrators and specialist companies are all expected to participate in the growth opportunities provided by this market.

"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."