The migration of IT and e-commerce applications to the cloud is creating huge opportunities for UK IT outsourcing companies, according to Investec Growth & Acquisition Finance (Investec). As a result, Investec believes that 2012 may see an increase in the number of IT outsourcing companies that receive investment from private equity firms and specialist lenders such as Investec.
In Investec’s experience, IT services companies use extra investment to increase capacity, maximise security protection and invest in more powerful networking and communications equipment. It is vital for IT services companies to maintain highly reliable and secure systems on behalf of their clients in order to meet strict service level agreements (SLAs) and guard against financial losses or reputational damage caused by system downtime.
John Clifford from Investec said, “We believe that the UK IT services sector will experience healthy growth in 2012 and beyond, and we are ready to invest in that future. In order to provide the infrastructure required to meet the needs of clients, outsourcing companies will need access to capital, and given the range and flexibility of financing solutions we offer mid-sized companies, this is a very exciting opportunity for us.”
Investec offers a broad range of flexible financial solutions to IT outsourcing specialists and other mid-sized companies looking to raise between £5 million and £50 million to support organic or acquisitive growth strategies. Its integrated finance offering means it is able to create debt structures combining revolving, amortising, senior and mezzanine lines of credit along with minority equity states. In August 2011, Investec provided Darwin Private Equity with senior debt finance to support them acquiring a controlling interest in Attenda, the leading IT managed services specialist.
John Clifford continues: “Difficult market conditions are fuelling demand for IT services because companies can reduce costs by outsourcing hardware, software and maintenance or support to trusted third parties. The number of emails sent every second is now estimated at 2.9 million, while data processed by Google every day has reached 24 petabytes.1
“The rise of ‘big data’, including video and photography archives, internet search indexing and social media is also driving demand for higher volumes of IT storage, which can be provided on a flexible basis by third parties at a lower cost
Source:http://rfpconnect.com/news/2011/11/28/investec-targets-fast-moving-uk-it-services-sector-with-investment-funding

