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News Release

29 November 2005

UK businesses bridge IT shortages
with managed services

research reveals strategic technology re-focus in 2006 will drive
surge in outsourced support

Pressure to deliver strategic IT projects is fuelling a growing internal resource and skills shortage.

Application development will top the 2006 IT budget list at 20.7% of total spend. Despite the additional management and operational burden this will create, IT directors are facing headcount restrictions with less than 3% of IT spend going on technical support.

As a consequence, 19.1% of budgets will be spent on outsourcing infrastructure management and hosting to free up valuable internal resources and optimise the use of the employee skills-base.

These are the headline findings of market research carried out by Globix. 196 senior IT decision-makers at large UK corporates were questioned about their IT plans and strategies for 2006.

The research revealed that:
* Spend on technical support will plunge from 10.9% of IT budgets in 2005, to 2.7% in 2006 – a three-quarter reduction

* Spend on outsourcing infrastructure management and hosting will be up 48% in 2006 compared to 2005

* Spend on application management will outstrip network security during 2006

* Technology refresh programmes will account for 14.2% of 2006 IT budgets

* Investment in hardware/software, media services and technology consultancy were rated as the top three priorities to support future business requirements

“Managed services are rapidly becoming a crucial element of any sustainable IT strategy,” said Philip Cheek, managing director at Globix UK. “IT directors are under intense pressure to deliver more without increasing liabilities or capital expenditure. Partnering with an outsourced services provider that can add value through access to cutting-edge technology, a pool of flexible resource and complementary skills-sets offer the ideal solution.”

The annual research is part of Globix’s ongoing market intelligence programme.

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Globix UK is a leading managed hosting and security services provider, offering a one-stop outsourcing-shop for businesses looking to reduce the cost, complexity and risk associated with managing complex web infrastructures.

It’s comprehensive portfolio of products and services includes: infrastructure (co-location, business continuity, networks); managed hosting and security (server admin, IDS, DDoS); application management (databases, custom code, web servers) and media services (streaming); supported around the clock by a team of highly experienced consultants and engineers.

Globix provides expert solutions for SMEs through to large blue-chip businesses across a range of vertical markets, and has over 400 UK customers including LloydsTSB, The Telegraph, Carphone Warehouse, and Ebookers. It owns and manages its own infrastructure and operates some of the most advanced data-centre facilities in Europe.

Globix UK is a wholly-owned subsidiary of Globix Corporation, which is headquartered in New York (AMEX:GEX).

For further press information, to request photography or an interview, please contact George Coleman / Caroline Howlett at Nelson Bostock Communications:
Phone: +44 (0)20 7229 4400
Fax: +44 (0)20 7792 7431
Email: george.coleman /

This press release was distributed by ResponseSource Press Release Wire on behalf of Nelson Bostock Unlimited in the following categories: Computing & Telecoms, for more information visit