Managed Services in Ireland have grown within the last number of years and developed themselves as a separate entity to outsourcing. Companies are starting to see definite business benefits to its execution and for enterprises it is now an accepted strategic direction. For the SME community, Managed Services are probably even more suitable as it targets a lack of skills and cost reduction as its main challenges to overcome. With spending in the area to reach €40m in 2006 within the SME sector, we see certain advantages driving demand in this market for Managed Services. This report highlights and analysesthe benefits that managed services bring to SMEs.