Monday, August 22, 2005

Managed services boom

Managed services are rapidly becoming a strategic option for IT savvy CIOs in the Middle East and also around the globe. Services vendors are providing discreet outsourced IT functions or a cluster of processes, consolidating execution and supervision of those activities on a turnkey approach by using contingent workers.A managed service provider saves money for its clients and provides expertise in areas of IT that are rapidly changing, but whose internal mastery is not vital to clients. A report from Kelly IT Resources says corporations view this approach as a way to free up resources to devote to their core competencies. The UAE’s spending on IT services rose by 12.7% to US$308.5 million in 2004. According to global research firm IDC, end users in the region are moving away from the basics of implementation and support to customisation and outsourcing.In addition, enterprises are warming to service models because their IT infrastructures are becoming increasingly complex, necessitating highly trained IT specialists and contractors. As a result, IDC expects the region’s IT services market to grow consistently at approximately 12% for the foreseeable future, eventually reaching more than US$535 million by 2009.

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