From Zika to President-elect Donald Trump and the unveiling of the Tesla 3 — 2016 has been a big year. Last year was filled with surprises: the Cubs broke the world series drought, Brexit shocked millions around the world, and the death of David Bowie, Prince and George Michael were honored with heavy hearts.
But 2016 was monumental in IT too; new developments in big data and artificial intelligence have changed the way we live our lives. NextVR created a remarkable NFL and NBA virtual reality experience that fuses the best aspects of watching a game on TV and being in the stadium. SpaceX landed a reusable orbital class rocket, the Falcon 9, on a drone ship out in the middle of the sea and an authentic looking Rembrandt painting was recreated by a 3D printer. There is no doubt that advancements in technology will continue to enhance our personal and professional lives.
3 Reasons to Partner with Managed IT Experts in 2017
And as we move into 2017, there are a number of trends in IT that will become much more prevalent. In particular, studies have proven the advantages of outsourcing to managed IT experts. Below we have summarized three reasons managed IT experts will be a hot topic this year.
1. Outsourcing IT Is on the Rise (And Will Continue to Grow in the Years to Come)
Deloitte’s 2016 global outsource survey found that 31% of IT services have been outsourced, and organizations will continue to invest more and more of their IT budget in trusted outsource partners. The study showed that IT was the third largest industry that was outsourced, following finance which outsources 36% of services, and HR, which outsources 32% of services.
Large organizations are the most likely to outsource and, in 2016, large organizations spent 7.8 percent of their IT budget on outsourcing at the median. Midsized organizations spent 6.7 percent, and small organizations spent 3.7 percent of their IT budget on outsourcing.
Net: No matter the size, businesses are taking advantage of the expertise available to fill any shortcomings and gaps within their own organization.
A study by CompTIA found the primary drivers for outsourcing IT ranged from the ability to reduce IT costs and secure a fixed monthly IT spend to the peace of mind of being able to rely on a team of external experts to provide best-in-class security, uptime, and overall performance. CompTIA’s research also found that businesses are partnering with external managed IT experts to free up internal IT staff and allow them to focus on strategic IT projects.
2. Managed IT Experts Provide Benefits Beyond Cost-Cutting
While reduced IT spend is still the leading reason behind organizations choosing to outsource their IT — 2016 showed a drastic increase in the number of organizations that rely on managed IT experts to help their business innovate. Thirty-five percent of Deloitte’s 2016 global outsource survey respondents said, “They already measure the value of innovation in their outsourcing relationships.”
What’s more, about 21% of Deloitte’s survey respondents said they make innovation a critical component in their service level agreements. For companies that are struggling to grow and innovate, managed IT experts are providing an avenue to transform their business processes by helping them adopt and integrate cutting-edge IT practices.
The managed hosting benefits of added value and innovation that partners are bringing their clients shows a transition from outsourced IT vendors providing reactive services to a much more proactive relationship that results in a shared responsibility between vendor and client.
3. Rising Downtime and Security Costs
As the amount of business done in the cloud continues to increase, and network downtime cost are on the rise, the need for top line security and a strategy to prevent cloud security risks is also at an all-time high. But CSID’s 2016 small business survey found that 31 percent of small business owners are not taking any proactive steps to protect against cyber threats. CSID’s study found that the reason behind the lack of investment in protection from a security breach was that small businesses don’t believe they are handling information that puts them at risk of an attack.
However, statistics compiled by the National Cyber Security Alliance found that more than 70 percent of attacks target small businesses and an estimated 60 percent of SMBs go out of business within six months of being hacked. Proving that businesses of all sizes are at risk.
Download the 2017 eBook Update: “How Managed IT Easily Outperforms In-House IT Every Time”
Get the full scoop on the advantages of partnering with managed IT experts, download your free eBook, How Managed IT Easily Outperforms In-House IT Staff Every Time — 2017 Update. The updated eBook will teach you how to assess your IT needs to uncover opportunities for growth and innovation and prevent wasting resources on unpredictable IT problems. Discover how managed IT experts can improve your business profitability and drive innovation. Download your free copy of the 2017 eBook today.