Many small to medium-sized businesses (SMBs) should adopt managed IT outsourcing as they downsize their companies.
Aaron Sawchuk, chief technology officer and co-founder of ColoSpace, which runs data centres, tells SearchDataCenter.com that managed hosting can help to reduce IT headcount and in turn keep costs low.
The expert states managed IT outsourcing is particularly important for companies with a computer count lower than 50.
Businesses of this size "rarely need a full-time server administration or network staff", meaning managed hosting may be the ideal solution.
"A hosting provider is up to speed on the latest technologies, trained and certified to keep your business connectivity up and running at all times," Mr Sawchuck tells the website.
The company has recently seen a boom in managed hosting demand, reporting its best period of revenue in the fourth quarter of 2008.
Verizon Business recently recommended managed hosting services to help firms improve quality while reducing costs.