The increasing need to reduce operational costs and time gives an impetus to the growth of the value-added managed services market in the APEJ region

Value-added managed services market in the APEJ region is forecasted to grow at a CAGR of 14.1% over 2012 to 2016. This market has witnessed an increased demand for cloud-based services. However, the lack of transparency of service level agreements (SLAs) could pose a challenge to the future growth of this market.

The cloud-based managed services model is taking off at a tremendous pace now and is expected to be a key trend in the market within the next few years. There appears to be a decent market for managed cloud-based services at the small and mid-market level. Given their advantages, many end-users prefer cloud-based solutions.

Moreover, with advantages such as reduced costs and ease of installation and operation, SMBs find cloud-based services more useful compared to other traditional service offerings. Thus, seeing the increasing demand and popularity of cloud-based offerings, many vendors in the value-added managed services market in the APEJ region are offering cloud-based services.

One of the main growth drivers within the market comprises the need to reduce operational costs and time. There has been a significant transformation and development in the way firms have approached IT services over the past decade. Currently, the market is witnessing increased demand for managed services. With a growing number of vendors of managed services, coupled with the 24/7 availability and high quality of such services, organizations are increasingly seeking them out in an attempt to reach out to the local talent and maintain an economical internal cost structure.

One of the major challenges faced by the value-added managed services market involves the lack of transparency of SLAs. SLAs are extremely important to a customer as well as a managed service provider. Customers often do not know what services to choose as a part of the SLA. Also, managed service providers are often not consistent and fail to fulfill their promises.

For further insights, visit Value-added Managed Services Market in APEJ

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