Oakbrook Terrace, Ill. – Buyers of managed information technology (IT) services will focus on security, storage and disaster recovery services in 2007, according to research commissioned by Oakbrook Terrace, Ill.-based Computing Technology Industry Association Inc. (CompTIA) and conducted by Rochester, N.Y.-based Harris Interactive Inc. 

One-third of the 322 organizations surveyed—all current users of managed services, some being insurers—said they plan to invest or upgrade their spending in managed security services in 2007. The same percentage of organizations, 33%, said they plan to invest or upgrade spending in storage, backup and disaster recovery services.

Other managed services spending priorities for 2007 include Web or email hosting, cited by 27% of the surveyed companies; network monitoring and administration, 25%; and software-as-a-service and application subscriptions, 20%.

When asked why they choose to invest in managed IT services, 40% of the organizations said it is because they do not have the in-house skills to manage certain IT services. Another 30% said it is less expensive for them to have an outside party manage certain IT services than if the work was done in-house; while 21% said they chose the managed services model because it allows them to focus on their core competency.

A March 2006 INN survey showed similar reasons insurers are outsourcing more than ever. The primary reason insurers outsource business is to cut costs, followed by to obtain technology, skills or knowledge and to focus on core business.

The managed services users surveyed ranged from small businesses (1-20 employees; annual revenues of less than $5 million) to large enterprises (1,000 or more employees; $250 million or more in annual revenue); and covered a broad cross-section of industries. The mean amount spent by the companies on managed services in the past year was $243,855.

Source: The Computing Technology Industry Association, Inc. and INN archives

Register or login for access to this item and much more

All Digital Insurance content is archived after seven days.

Community members receive:
  • All recent and archived articles
  • Conference offers and updates
  • A full menu of enewsletter options
  • Web seminars, white papers, ebooks

Don't have an account? Register for Free Unlimited Access