Username:  Password: Lost Password? Sign Up








Worldwide IT outsourcing to surpass $251 billion in 2012

By: Charlotte Bumstead
August 27, 2012 |   del.icio.us           What's this
As more companies and those in emerging markets in particular continue to transition away from  legacy systems and move production environments into cloud based models, it is not difficult to believe that the fastest-growing segment within the IT outsourcing (ITO)market is public cloud services (specifically, the cloud-based infrastructure-as-a-service, or IaaS, segment). However, the magnitude of this growth was confirmed by Gartner Research earlier this month. According to Gartner’s forecast analysis IT Outsourcing, Worldwide, 2010-2016, 2012 Update, purchasing computing power from sources beyond the privately owned data centre or on-site room of services is driving increasingly rapid business growth in this area.

Gartner Research has predicted that, for the first time, the worldwide spend on IT outsourcing will surpass $250 billion in 2012. This growth is due in large part to the increased availability of IT through cloud services platforms. Gartner also found that cloud compute services are expected to grow 48.7% in 2012 to $5.0 billion, up from $3.4 billion in 2011.

“Today, cloud compute services primarily provide automation of basic functions,” said Gregor Petri, research director at Gartner. “As next-generation business applications come to market and existing applications are migrated to use automated operations and monitoring, increased value in terms of service consistency, agility and personnel reduction will be delivered.”

At the same time, ongoing privacy and compliance concerns may have a negative impact on growth in some regions, Petri added, especially if providers take their time in bringing localized solutions to market.

Gartner’s forecast also revealed the application outsourcing (AO) segment is expected to reach $40.7 billion this year, a slight increase from 2011. This growth reflects a need among enterprises for continued management of extensive legacy application environments, as well as their commercial off-the-shelf packages which can help determine the course of the business.

Page: 1          1   |  2   |  3   |  Next Page