Outsourcing Email

Due to security concerns and delivery problems, more companies are moving toward outsourced email services. In a report on hosted email, research firm Radicati Group estimated there are 856 million hosted email accounts, projecting that this number will go over 1.4 billion by 2009.

Currently, 69% of all email accounts world wide are outsourced. The majority (64%), are ISP/web mails.

The use of hosted email solutions by the business sector is changing. While 64% of the "hosted business email" users are small businesses, a greater percentage of medium and large businesses are looking into and using hosted email solutions.

Faced with the growing complexity and rising costs of maintaining email programmes internally, the lucrative "mid-market" of 500 to 5,000 employee organisations represents a key opportunity for hosted email providers. These customers are often frustrated with managing security concerns on their own, as well as responding to growing requirements for e-mail archiving and regulatory compliance.

Next: Snapshot of Email Marketing Research 2004-2005