Managed Services Not Meeting ROI Expectations in Australia, Study Finds

Some managed service providers are not fully meeting the total cost of ownership and return on investment expectations of their customers, according to an IDC Australia study.

The study found that 23 percent of 100 Australian IT managers and decision makers surveyed have incurred an increase in costs under a managed services provider, not a decline, as one normally would expect. 

“That’s one of the highest figures in the entire region of Asia-Pacific — it’s higher than New Zealand, and the only place higher is Malaysia. Everywhere else, like Singapore for example, it's at five percent,” said IDC Australia associate research director Dustin Kehoe.

About  44 percent of the C-level respondents say costs have increased or costs have stayed the same. About 56 percent actually saw cost savings, the study found.