More IT service providers are relying on IT automation to compete effectively, a new study finds. The stakes will only get higher with time.
Just under half (48%) report they are managing 50 or more IT environments. Another 24% report managing 10 to 50.
Just over half of the IT service providers (54%) say they actively collect and store data on customers’ IT performance. Most of those IT service providers (81%) are using that data to improve service.
Just under a third (30%) said it was too complicated, while 23% said they lack the tools needed to make sense of it.
Only a minority of IT service providers (8%) have put in place automated processes for transforming data into actionable recommendations. For those that have, data automation has directly led to more than a third doubling their client servicing capacity. Almost three-quarters can now service customers with more complex IT environments and more than one-quarter of respondents have even entirely automated their managed security services.
One-fifth (20%) say they have already enjoyed at least a 100% return in their automation investments. The proportion experiencing 100% or more ROI in the next two years is expected to rise from 20% today to 47%.
Nearly 75% of those who have not yet deployed data-driven automation strategies believe that doing so would enable them to deliver a range of new services. More than one=third believe it would give them a competitive advantage. A further 49% see it as the route to offering more sophisticated services and winning more business as a result. Another 38% say they can support more complex IT environments.
Nearly four in 10 (38%) say automation has at least doubled their capacity without adding head count. Another 34% cite a 25% to 50% increase in capacity. At the same time, 38% report that IT automation has increased the need for strategic IT consulting, while 34% said they needed improved IT skills.
Just over half (52%) actively fear that service providers that do not adopt automation will likely lose out to their more advanced competition; 6% even think that failure to adapt will lead to going out of business.