According to the latest procurement intelligence report from Technavio, the global network management services market is expected to grow at a CAGR of 9.4% over the next five years, primarily driven by demand from large organizations to improve network performance.
The global network management services market is expected to grow at a CAGR of 9.4% from 2017-2021.
The research report titled ‘Global Network Management Services Market: Procurement Intelligence Report 2017-2021’ provides an in-depth analysis of category spend, best procurement practices and cost saving opportunities, aimed at helping organizations achieve superior business performance. The report also provides insights on pricing, supplier positioning and top companies, enabling sourcing professionals to improve their competitive advantage through procurement excellence.
“During the forecast period, the network management services market is driven by the increase in demand from expanding organizations to improve network performance and support mission-critical applications,” says lead Technavio procurement specialist Angad Singh for category spend intelligence. “In addition, growth in the need for secure networks and server traffic management from various sectors such as telecom, IT, healthcare, and BFSI, will also drive the market,” adds Angad.
Cost saving opportunities in the network management services market
The adoption of various cost-optimization levers helps buyers of network management services to realize direct cost savings and enhance category management and value benefits (including a reduced procurement complexities).
Technavio procurement experts have segmented the cost saving opportunities in the network management services market into the following value-enhancement opportunities:
- Adoption of technology
- Supplier Competition
- Adoption of negotiation strategies
- Optimization of procurement practices
- Bundling of services
Adoption of technology saving aspects
Technologies such as network performance monitoring tool, network configuration manager tool, IP address manager tool, user device tracker help to collect performance data, track and secure the networks. The adoption of these technologies can minimize costs to the extent of 7%.
Buyers prefer suppliers that adopt a proactive approach to prevent network non-availability issues before application performance problems arise. They want suppliers to use sophisticated network management systems that provide the end-to-end visibility required for RCAs, fault isolation, and performance restoration across networks.
Adoption of negotiation strategies saving aspects
Network management includes continuous configuration changes, add-ons, and upgrades to be performed on networks across network sites of organizations. Buyers prefer suppliers that provide frameworks for consistent network implementation across business locations and aid in continuity of business operations. They expect suppliers to provide dedicated and specialized services with more predictable and economical cost structures by taking advantage of their economies of scale.
Bundling of services saving aspects
One of the most opportunistic strategic cost saving levers in the global network management services market is the need for bundling of network management services with storage and application management services.
Buyers want suppliers to provide a standardized network management process and implement best practices across business locations. This helps buyers maintain consistency in network management services across organizations. Suppliers must constantly invest in new technologies to better align networking capabilities with new business requirements.