Guest author: Mike Alley, Director, IT Service Management

According to financial advisory firm TABB Group, more than half of financial institutions will utilize managed services by 2016. The benefits of outsourcing infrastructure needs are abundant in the financial realm. Here are five key reasons why managed services are on the rise in the financial industry:

1. The move toward managed services has been heavily influenced by financial concerns. IT costs have evolved from major one-time spends into monthly operational expenses. As cloud-based managed solutions become more affordable, they continue to gain popularity among this group.

Scanrail/Bigstock

Scanrail/Bigstock

2. Managed services provide additional flexibility and quicker response times. This is critical in the financial industry as institutions work to provide the highest level customer service to their clients.

3. The concerns surrounding managed services are, not surprisingly, related to security. Financial institutions are held to the high standards of security by both official regulations and consumer expectations. Fortunately, security is also top-of-mind for managed service providers.

4. As technology continues to constantly change, financial institutions struggle to keep up. By outsourcing IT needs to managed service providers, financial service providers can focus on the needs of their clients and put trust in IT experts without sacrificing security and cost-efficiency.