Managed services projections increase through 2023

In this report, the news about technology investments was surprisingly upbeat. Despite national news about increased costs, economic uncertainty, and more reports of technology firm layoffs, respondents indicated that they were planning to spend more IT budget in 2023, not less. A notable 51% of respondents said that their IT budgets would increase, compared with 38% who said their budgets would remain the same, and only 6% who said their IT budgets would decrease.

In examining where IT budgets would be spent, managed services was the only category that continued to increase in projections from 2021 through 2023. As a percentage of total IT spending, managed services increased from 16% to 18% in that two-year projection period. In that same projection period, hardware inched down from 31% to 30%; software decreased from 29% to 28%; and hosted/cloud-based services decreased from 24% to 23%.

One contributing factor to managed services’ ongoing growth as a percentage of IT budgets is finding and keeping the right IT talent. The 2023 State of IT report stated that 59% of all respondents find it somewhat challenging or very challenging to find skilled IT talent.

Given the momentum of IT spending in 2023 and the trend toward finding managed services solutions, what is holding companies back from increasing their IT spending even more in this category?

One trend could be related to the pain points experienced by organizations that have pursued a relationship with a managed services provider (MSP) in the past. They include:

• Insufficient response times
• An MSP’s lack of technical knowledge
• An inability to understand clients’ IT environments
• An MSP’s understaffed technical resources
• Poor customer support/communication
• Inadequate security monitoring

Fortunately, these areas of concern are strengths for Rimini Street and our Rimini Manage™ offerings.

Rimini Support™ and Rimini Manage™ offerings are built with our clients at the center, with the goal of providing superior levels of service and responsiveness. Proof that we are achieving our goal comes from our client satisfaction ratings that average 4.9 out of 5.0 in thousands of surveys.

Rimini Street is structured to deliver ultra-responsive, expert-level support to our global clients from a service delivery team of nearly 1,000 FTEs working across 17 countries in a true 24x7x365 “follow-the-sun” operation. And our Global Security Services teams are staffed with product specialists and senior security professionals who have extensive experience in enterprise software security.

Learn more about our Rimini Manage suite of managed services for applications and databases, including our unlimited ticket model, broad catalog of services, industry-leading SLAs, and global team of highly skilled engineers. Let’s discuss how outsourcing the day-to-day operations of your enterprise applications and databases to Rimini Street would be a smart line item in your 2023 IT budget.

To learn more, visit us here.