MSP use growing.

Revenue from services in support of enterprise customer premises (CPE) and network systems equipment totaled $246.5 billion in 2004 and is expected to increase 15.2% to $284 billion in 2005, according to the Telecommunications Industry Association's (TIA) 2005 Telecommunications Market Review

Spending on voice and data equipment is driving the market for services in support of CPE and enterprise network systems, TIA reports. Convergence, development of new products and technologies, adoption of open standards and increased interoperability of equipment from different vendors have increased the options available to enterprise network managers. These developments have also increased the expertise needed to design, integrate and customize systems to meet enterprise needs.

In a parallel trend, TIA says, enterprises have been outsourcing nonessential corporate functions to reduce overhead, provide greater flexibility and improve profits. Information technology has increasingly been outsourced. As a result, enterprises have turned to professional service providers to help them design, install, maintain, repair, integrate and support CPE.

Spending on services supporting enterprise network systems (data) made up 83% of this market segment, with $204.3 billion in spending in 2004, compared with $42.2 billion for CPE services (voice). Furthermore, services spending to support enterprise network systems will continue to outpace that for CPE support services, TIA predicts. Services spending in support of enterprise network systems is projected to reach $371.1 billion in 2008, while an estimated $62.5 billion will be from CPE support services.