The economic downturn has accelerated the trend of managed web hosting services .Nowadays many small and medium business operations are moving their offsite IT hostings to professional data centre facilities.Figures show an increase in managed hosting and several other external services in the recent times. While dedicated hosting has long been an option for the companies,Managed hosting is a fairly new idea that is an additional option for the companies that have a strong online presence to require a dedicated server.Cost-saving benefits achieved by the companies and on-demand services that are included in most new hosting contracts aid in the growth of the trend. Meanwhile,Gartner has revealed that 43 per cent of the European companies are categoric that the world will see more outsourcing this year,with 40 per cent of them intended to mark a swift increase in their balance sheets by spending on the external IT services hugely.It also suggests that software as a service,cloud system infrastructure services alongwith managed hosting will gain a momentum due to various on demand infrastructure benefits.