According to the latest statement of Gartner, the world’s leading information technology market research and advisory company, outsourcing is expected to continue its growth in 2009 despite the global economic downturn.
“Although things look gloomy for the larger global economy, the outsourcing market represents a dichotomy: on the downside, organizations’ cost-cutting outsourcing strategies may negatively impact market growth, but at the same time, the upside is that outsourcing will be adopted by more organizations to help them work through financial and competitive challenges,” said Gartner representatives.
The 5th annual Gartner’s research on outsourcing has revealed that the worldwide economic slowdown causes outsourcing customers to re-evaluate their contracts in order to streamline efficiency and costs. In response to new conditions organizations that are currently outsourcing will review their contract terms, either downsizing or expanding their deals. Considering or moving aggressively to outsourcing their IT or business processes will be the strategy for companies that are not outsourcing in an effort to concentrate more on their core business.
As Gartner reported, in 2008 new deals stood for about 76% of outsourcing contracts with the remaining being a contract expansion, extensions or renewals. In new economic conditions, according to Gartner, alternative delivery and acquisition models (ADAMs) will be widely adopted by companies. With these models, IT services will be delivered through such approaches as software-as-a-service (SaaS), cloud computing, remote management services (RMS), business process utility (BPU), and infrastructure utility (IU).
“During the next five to seven years, a broad set of new and alternative IT delivery models — already in use by aggressive early technology adopter organizations — will become mainstream,” Gartner said. “Since these models have been gaining attention from enterprises in recent years in relatively benign economic market conditions, they are likely to become of far greater interest to buyers as economic conditions worsen through 2009.”
See also: 65% firms offshore IT jobs - SIM Survey
World’s IT outsourcing in Q2 2011
Thanks for give me a opportunity for a comment in your blog . I have gone through your blog and I am agree with you that During the next five to seven years, a broad set of new and alternative IT delivery models — already in use by aggressive early technology adopter organizations — will become mainstream. I enjoyed the blog.
Waiting for your next post.
Thanks again