Wednesday, May 23, 2012
Worldwide IT outsourcing is a continually growing market, and showed no sign of slowing down this past year, but experts believe that growth could slow a bit in the future because of client adoption of new technologies.
According to a study by Gartner, worldwide IT outsourcing revenue totaled $246.6 billion in 2011, up from $228.7 billion in 2010. Providers that showed the highest growth rates in 2011 were those with their roots in cloud-based services. Forty-three ITO service providers booked $1 billion or more in revenues this past year.
Gartner's research director, Bryan Britz, believes revenue cannibalization due to client adoption of industrialized and cloud-based services could jeopardize possible future growth of ITO providers, which are heavily weighted in infrastructure outsourcing.
"Strategies will vary as clients are likely to pursue hybrid cloud strategies, requiring providers to deliver some asset-light and some asset-heavy offerings - which will result in varying growth trajectories among competitors over the next several years," said Bryan Britz, research director at Gartner.
Outsourcing continues to be a practice companies use because of its many benefits - most importantly, cutting costs.