Forrester: Spending On IT Services to Fall In 2009

Forrester: Spending On IT Services to Fall In 2009

Managed Services SpendingA 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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TAGS: Research
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