Despite global economic uncertainty, one field that’s set to keep growing steadily is that of managed IT services. By some estimates, it’s expected to grow by 12,7% worldwide – far surpassing the estimated 3,5% growth in overall IT spending.

In South Africa, this trend looks much the same, says Petre Agenbag, Service Delivery Manager at Dariel Software.

“And with good reason. Modern IT is evolving from a supportive role to an enabling and even entrepreneurial one. Gone are the days when IT performed a maintenance function. Today, IT is a strategic enabler, playing a crucial role in defining the business itself.”

According to Agenbag, this shift has been driven by the ever-increasing complexities of the modern business world. IT forms part of almost every single aspect of a business, performing core functions companies can no longer neglect if they want to keep their competitive edge.

“Businesses face increasing IT complexities, from cybersecurity threats to regulatory compliance. Managed services provide the expertise and tools to navigate these challenges efficiently.”

The benefits

A KPMG CIO survey found that 51% of CIOs plan to increase managed services, with the top reason being access to skills not available in-house (48%), followed by the ability to free up resources to focus on the core business (41%).

And that’s the crux of the matter, says Agenbag – the right managed services provider transforms IT from a necessary expense to a strategic advantage.

“In South Africa, the challenges businesses often struggle with include compliance such as POPIA, outdated systems, and a lack of in-house expertise. Managed services offer tailored solutions to these issues.”

As demand has grown, the role of managed services has changed, he adds. “Modern managed services providers have evolved into Managed Service Professional Providers (MSPPs), transitioning from reactive support to proactive, strategic IT partners. 

"This shift addresses growing demands for robust security, cloud management, and IT alignment with business goals. MSPPs mitigate challenges like the IT skills shortage, regulatory compliance pressures, and hybrid work complexities by offering cost-effective, enterprise-grade solutions. 

"By offloading critical but non-core functions like tax, compliance, and cybersecurity to specialised providers, businesses can reduce costs, enhance efficiency, and improve agility.”

Dariel, for example, has made it its mission to exemplify the role of the modern MSPP, offering unparallelled critical services such as advanced security and threat detection, tailored cloud solutions, virtual CIO (VCIO) guidance, proactive monitoring across the IT ecosystem, and strategic IT alignment. 

“This security-first approach with advanced analytics and monitoring tools prevents issues before they even arise, while also providing access to advanced tools and talent without the burden of upfront capital investment. 

"This approach not only addresses immediate operational challenges but also frees leadership to focus on innovation and long-term growth, ensuring competitiveness in a fast-paced business landscape,” says Agenbag.

How to choose a provider

When looking for an MSPP, it’s important to have a long-term outlook. When approached as a strategic choice rather than a reactive expense, you’ll get the most benefit out of managed services – and the most bang for your buck. 

“The right provider can proactively drive innovation, reduce risks, and align IT with your business goals. The wrong provider, on the other hand, is employed as a short-term stop gap, which doesn’t deliver any of the above-mentioned advantages even though it might seem like a cost-saving measure,” says Agenbag.

Here's what to look out for when choosing a provider:

• Local expertise

Your provider should have knowledge about local regulations as well as the local business landscape, including ways to save money on systems. Personalised service is also essential – you should be able to reach them easily to answer technical questions.

• System revitalisation

While it’s not always necessary to do a complete overhaul, you want to find a provider who looks toward the future and makes sure to enhance legacy infrastructure and applications, extending its value and aligning it with current business needs.

• A security-first approach

Support should be proactive and not reactive, with constant monitoring to prevent issues before they arise. Look for robust security measures such as managed SIEM (Security Information and Event Management), managed firewall, advanced threat detection, and AI-driven analytics for actionable insights.

• Tailored solutions

Lastly, a good provider will have the ability to tailor its solutions to your specific business needs, instead of a one-size-fits-all approach. It’s not just about keeping your systems running, but about transforming your IT into a true strategic advantage.