Streamlining Operations: How U.S. Enterprises Navigate Complexity Through Network Services

Published On: December 13, 2024 10:29 am

Managed Network Services: A Key Component for Modern Enterprises, Says ISG Report

Many U.S. firms are increasingly adopting managed network services to boost their AI capabilities and navigate complex network demands, reveals a new report by Information Services Group (ISG) III, an esteemed global technology research and advisory firm.

The 2024 ISG Provider Lens™ Enterprise Managed Network Services report underscores that recent years have seen enterprise networking become more difficult due to factors like new regulations, security issues, and the rise of remote work. Many companies are turning to managed network services, which offer security, network management, cloud connectivity, software-defined networking, and other capabilities without needing extensive internal expertise.

The report highlights that providers of managed network services are incorporating AI and automation into their offerings to handle complex networks more effectively. These advanced solutions aid in network monitoring, troubleshooting, and optimization.

Dieter Thompson, partner and president of ISG’s Network and Software Advisory business, stated, “The rapid evolution of digital technologies, including AI, has complicated network management and heightened pressures on IT teams. Outsourced networks now reflect the critical need for enterprises to better manage current infrastructure and innovate.”

According to ISG, U.S. enterprises lead in network outsourcing, surpassing adoption rates in Europe and Asia Pacific. Over recent years, many companies transitioned from partial network management with service providers to entirely managed solutions, significantly reducing operational complexity.

The report asserts that comprehensive network services lay a secure groundwork for business transformations, enabling organizations to concentrate on core functions and minimize risks linked to network updates. This focus is especially beneficial as businesses implement emerging technologies like generative AI.

Companies are increasingly incorporating managed connectivity services, which allow them to add options like VoIP and direct internet access (DIA) without extensive staff training. DIA is in high demand, offering a dedicated ISP link vital for high-performance applications, such as heavy data transactions. Additionally, the need for VoIP services is rising, propelled by a shift to remote work and the broader availability of high-speed broadband and 5G networks.

Network as a Service (NaaS) is emerging as the next logical progression in managed network services, particularly appealing to midsize companies, reports ISG. NaaS enables businesses to rent networking services that integrate seamlessly into existing commercial setups across various regions, paying only for what they use. While large U.S. enterprises are currently trialing NaaS, interest is notably higher among midsize organizations.

“U.S. enterprises require the adaptability to activate new networking capabilities as business needs evolve,” remarked Jan Erik Aase, partner and global leader of ISG Provider Lens Research. “Outsourcing is becoming a favored strategy to achieve this goal, especially for midsize firms.”

The report delves into other trends in enterprise network management within the U.S., such as the growing necessity for coordination among management vendors and the integration of multiple cloud services.

For further information on the network management challenges faced by U.S. enterprises—including increasing security threats and the importance of organizational change management—refer to the ISG Provider Lens™ Focal Points briefing here.

The 2024 ISG Provider Lens™ Enterprise Managed Network Services report assesses 33 providers across three key segments: Managed Network Services Evolution, Managed Enterprise Connectivity Solutions (DIA, VoIP & VPN), and Network as a Service (NaaS).

Notable providers like Accenture, AT&T, Comcast Business, GTT, Kyndryl, and Orange Business are recognized as Leaders in all three categories. DXC Technology, Verizon Business, and Wipro rank as Leaders in two segments each, while Apcela, Colt, HCLTech, and Microland are acknowledged as Leaders in one segment each.

In addition, Capgemini, Colt, and HCLTech are classified as Rising Stars, indicating they possess a promising service portfolio and significant potential for growth in one category each.

For customer experience, Accenture is highlighted as the global ISG CX Star Performer for 2024 among enterprise managed network service providers, having achieved the highest satisfaction ratings in ISG’s Voice of the Customer survey, which is part of the ISG Star of Excellence™ program—recognized as the top quality acknowledgment in the technology and business services sector.

A tailored version of this report can be requested from GTT.

The 2024 ISG Provider Lens™ Enterprise Managed Network Services report is available for subscribers or as a one-time purchase on the relevant webpage.

About ISG Provider Lens™ Research

The ISG Provider Lens™ Quadrant research series stands as a unique service provider evaluation that merges data-driven analysis with ISG’s global advisory team’s firsthand experience. This research offers enterprises extensive data and market insights to guide their partner selection while aiding ISG advisors in validating their market knowledge and recommendations for clients. The current research encompasses service providers operating globally and across various regions, including the U.S., Canada, Europe, and parts of Asia, with plans for further expansions in the future. For additional information on ISG Provider Lens research, please visit the designated webpage.

About ISG

ISG (Information Services Group) III is a globally recognized technology research and advisory firm, serving over 900 clients, including more than 75 of the top 100 enterprises worldwide. The firm focuses on assisting organizations in achieving operational efficiency and accelerated growth. With expertise in digital transformation, covering areas like AI, cloud, and data analytics, sourcing advisory, and other business services, ISG aims to provide valuable insights for its clients. Established in 2006 and headquartered in Stamford, Conn., ISG employs a team of over 1,600 professionals across 20 countries, known for their innovative thinking and excellence in market research. To learn more, visit www.isg-one.com.