Businesses are still turning to managed services to retain their competitive edge during the economic downturn, according to IT services specialist NIIT Technologies.

NIIT claims companies are opting for a variety of managed service solutions ranging from basic connectivity systems to complex application and datacentre services, as a way to cut down on IT spend.

In addition, the services firm said businesses are investing in managed services to deal with unpredictable business volumes, tight credit conditions and rapid technological changes.

Ravi Shankar Pandey, senior vice president and UK head at NIIT Technologies, said: "Managed services have created vital efficiencies and savings for these companies which are often operating in difficult market conditions, enabling them to invest and grow and become more competitive.

"Businesses operating across a variety of sectors are reporting myriad benefits delivered across a wide cross section of their operations."

A recent survey from market watcher Forrester found that of 2,300 IT executives and technology decision makers in North America and Europe, almost 20 per cent were purchasing more managed services as a result of the current economic conditions.

Furthermore, the latest Enterprise and SMB Networks and Telecommunications Survey found that 47 per cent of SME respondents had already purchased managed or outsourced telecommunication services.

Pandey added: "Businesses want to work with a single reliable, capable vendor. We have entered an age where the provision of network connectivity, applications configuration and management, and datacentre services in flexible bundles by a third party that augment a customer’s capabilities are fast becoming the norm."