By Madhubanti Rudra, TMCnet Contributor
Companies all around the globe have discovered a simple way for reducing their IT expenditure and that is through outsourcing services with Managed Security Service (MSS) providers. This is helping the companies in a big way to turn their capital expenditure (CAPEX) into softer monthly payments. The MSS outsourcing is not only helping the companies reduce the IT costs, it is also helping the enterprises concentrate on their core business.
According to renowned research firm, frost & Sullivan, these trends have helped drive growth in MSS outsourcing markets in some parts of the globe and Latin America is one of the most important of these outsourcing hubs, where MSS market continues to show a solid growth pattern. The countries in the region also maintain the strong record of complying with local and global legislations and this, according to international research firm, is another crucial factor that helped drive in growth in Latin America’s MSS sector. The Frost & Sullivan (News – Alert) study found out that in 2009, the Latin American MSS market reached a total of $154.3 million in revenue. Brazil was by far the most representative region in this market, with 54.2 percent of participation, and is not expected to change throughout the studied period. In addition, the forecast for the Andean region is to have the greatest participation increase from 2009 to 2015, driven by the high-expected growth rates of the Colombian and Peruvian MSS markets. However, one country in the region has a relatively lower participation in the MSS market and that is Mexico. Compared to other IT related markets, Mexico records a MSS participation which is as low as 15.7 percent, of similar size. Along with Mexico, Argentina too recorded lower participation and this, according to the research firm was the outcome of the effects of the global economic recession. So far as vertical adoption is concerned, the most participative segments included both Telcos & Technology and Manufacturing & Industry. Banking and financial sectors are where MSS outsourcing is the most relevant issue and in the region, these two sectors are the most representative one in the majority of IT markets in the region. According to the Frost & Sullivan findings, banking and financial sector in the region is a strong adopter of “in-house” network security structures. The Frost &Sullivan research has also made prediction about the emerging segments where MSS outsourcing will grow at a fast pace. According to the research firm, Government and Retail verticals are expected to grow the most until 2015. In a nutshell, the recent Frost & Sullivan study concluded that the Latin American MSS services market is becoming increasingly competitive, with the active participation of global IT service providers, telecommunication companies and pure MSS players. “Additional drivers for this market include the decrease of total cost of ownership (TOC) and cost of acquisition (TCA), the increase of complex and diversified attacks and the scarcity of qualified security personnel in the market,” Frost & Sullivan Research Analyst Fernando Belfort, explained.
Madhubanti Rudra is a contributing editor for TMCnet. To read more of her articles, please visit her columnist page.
Edited by Erin Harrison
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