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New Research from NTT Underlines the Value of Smart Sourcing in The Face of New Business Challenges

As businesses seek to recover and respond to a changing environment in the wake of COVID-19, service providers are on notice to increase their value. NTT’s 2020 Global Managed Services Report highlights security credentials, the depth of technical expertise and ability to deliver outcomes aligned to the business goals, as fundamentals of smart sourcing.

From cloud to networking, data center to security and more, breadth and depth of capability is essential to recover and restore operations and position organizations strongly for the coming years.

Identify and secure your assets

57% of respondents cited security risks as a key challenge of managing IT in-house, rating the highest among all factors considered. With the current COVID-19 crisis, we expect to see an increase in respondents citing security risks as a key challenge. Organizations are struggling to defend themselves against a complex and worsening threat landscape.

The prevalence of security on the business agenda is further heightened by the explosion of endpoints into remote environments, coupled with an uptick in BYOD. Threat actors are exploiting people working from home, and likely, on inadequately secured devices and networks.

Security plays a crucial role in the wider business agenda and thus is part of smart sourcing. 32% of respondents rated security the most important factor, compared to 30% for improved operational efficiency and 29% for better performance and availability.

84% of organizations believe that managed service partnerships will provide value (44% of which see extreme value provided) over the next three to five years through their security capabilities.

Damian Skendrovic, Executive VP, Managed Services Go-to-market at NTT, says, “During these challenging times, organizations move through a series of phases and are prioritising security as an initial response and recovery mechanism. Service providers need to help them adapt now, but also help them bounce back quickly when the business environment reignites.”

Refocus on end-user transformation

The report highlights how 48% of organizations already recognize a need to optimize the workplace environment to meet the demands of an evolving workforce.

Ensuring employees can remain connected securely, productively and efficiently is top of the leadership.43% of respondents rated SD WAN as the leading technology project under consideration? SD WAN helps improve performance and user experience by gaining visibility of corporate assets and data across the network.

And, this drive in the consideration for new services is likely reflected in the rise in the number of organizations who expect to outsource more of their IT than they insource – almost doubles from 23% currently, to 45% in 18 months’ time.

Expertise and service provision

Technical expertise has long been one of the most important criteria organizations consider when selecting a service provider. The ability to tap into skilled resource at will is a major benefit. Organizations primarily look for technical (and industry) expertise when selecting a service provider (44% and 30% respectively).

Specifically, expertise in cloud infrastructure (73%) and security (53%) lead the way in terms of technologies currently outsourced to service providers. Those numbers are set to increase in 18 months to 77% and 64% respectively.

To help CIOs and their teams, the report highlights how business changes impact IT decision-making. New product development is expected to be the most common impact on IT decision making in the next 12 months (54%). Regulatory changes (51%), growing into new territories (48%) and skills shortages (47%) are the second, third and fourth most common impacts.

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