Forrester: Spending On IT Services to Fall In 2009
A few weeks ago, Forrester Research told the world that spending on managed services would continue to skyrocket. Now, the research firm says spending on IT services (notice the subtle difference) will fall 3 percent in 2009. So what should MSPs expect to see in 2009? I have my own guess.
I believe — but need to double-check — that Forresters’ IT services forecast includes everything from on-site consulting to managed services. Either way, the latest Forrester statement provides a healthy reminder that IT services success in 2008 does not guarantee continued success in 2009.
So, how will managed service providers perform in 2009?
Looking back, the MSPmentor 100 members saw their recurring revenues climb 60 percent in 2008 (vs. 2007), but it’s important to remember those companies represent “the best of the best.”
Looking ahead, I think established MSPs that generate double-digit recurring revenue growth in 2009 (in percentages vs. 2008) should be pleased with their efforts. In other words, 10 percent or more managed services revenue growth for established MSPs would be impressive for this year. Or am I off the mark?
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So, here’s a follow-up thought on who’s thinking about growth for 2009. Got a note earlier today from Mike Cooch, CEO of Everon — a well-respected managed service provider.
Cooch is thinking growth for 2009, and will be at Zenith Infotech’s MSPtv studios on Jan. 22. While there, he’ll be talking about seven growth strategies for 2009. You can register for the videocast by visiting here.