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EDITOR'S NOTE
Dear readers
Welcome to the first edition of the Managed Services and Outsourcing monthly newsletter. Discussing the latest news, trends and market predictions, this newsletter is designed to become your primary source of industry information.
On that note, in outsourcing news this month, Telkom has appointed its group executive for network core operations, Pierre Marais, to act as MD for its newly-created Telkom Data Centres unit.
Also this month, Simeka Business Group is riding out the recession, recording revenue of R752.1 million for the past financial year. It says the challenging environment is a benefit, as companies aim to cut costs.
In other news, Faritec's leadership is now back to full strength with the appointment of Fanie van Rensburg as CEO from next month. Van Rensburg joins the JSE-listed IT solutions and services company from Shoden Data Systems.
I invite all industry players to contribute to the newsletter. Please mail me with any suggestions and feedback.
Leigh-Ann Francis
leigh-ann@itweb.co.za

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Garth Hayward, regional manager for Africa, Kaseya
What is the major trend you are seeing in your industry?
A: We are seeing a transition in IT service organisations from an old business model of 'break- fix' type services, where a company only calls upon them when their computers are not working, towards a proactive delivery service ensuring customers' installations do not break in the first place.
Q: What do you love the most about your job?
Assisting IT service organisations in transforming their businesses from unprofitable and ineffective 'break-fix' organisations to profitable and proactive world-class IT managed service providers.
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Master Managed Service Provider
Master MSP or MMSP describes an organisation that hosts one or more managed service 'point solutions' for resale through an indirect channel of technology solution providers. A Master MSP allows technology service providers, value-added resellers and other managed service providers access to hosted, managed service point solutions generally on a pay-as-you-go-model.

Garth Hayward, regional manager for Africa, Kaseya
As this is the first edition of the managed services newsletter I thought it would be appropriate to define and discuss exactly what is meant by the term IT managed services provider (MSP).
Wikipedia defines an MSP as "an IT services provider who manages and assumes responsibility for providing a defined set of services to their clients either proactively or as they (not the client) determine that the services are needed, usually for a fixed monthly fee".
In practice, this is an attractive and rewarding value proposition for the key stake holders. MSP service automation platforms have the added advantage of ensuring that the mundane but extremely important daily IT tasks required to ensure MSPs meet the SLA conditions contracted between MSPs and their customers are met.
Automation is key for South African MSPs as it increases the productivity by at least 300% (and growing) in the amount of end points each technician can manage and maintain.
Given the shortage of qualified IT technical personnel in SA, perhaps it is no small wonder that its claims to be the fastest growing sector in the IT services market are justified.
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An annual survey by accounting and consulting firm BDO Seidman showed 22% of participants say the US is the outsourcing destination they are most likely to consider in 2009, compared to 16% for China and 13% for India.
The number of outsourcing contracts worth more than $25 million signed by global financial services firms declined by 19% in 2008, compared to 2007, and their total value decreased by more than 25%.
Everest Research Institute found the addressable market for Indian BPO outsourcers will be $220 billion to $280 billion by 2012.
The $50 billion-a-year offshore outsourcing business was growing at a 29% annual rate until the credit crisis hit last fall. Forecasts indicate growth in 2009 to be about 10%.
When compared to two years ago, 58% of companies said they had less belief that working with Indian IT outsourcers delivers value for their company and its shareholders.
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The Tyrannosaurus Rex desk lamp makes chewing through paperwork less monotonous.
LEDSAUR
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