Cloud compute services segment is expected to rise 48.7% during 2012 to $5bn
The global spending on IT outsourcing (ITO) services expected to reach $251.7bn in 2012, reporting a 2.1% rise when compared to $246.6bn spent in 2011, according to a new report from Gartner.
Cloud compute services segment is expected to be the fastest-growing segment in the ITO market with an expected 48.7% growth during 2012 to $5bn, when compared to $3.4bn the previous year.
Gartner research director Gregor Petri said today, cloud compute services primarily provide automation of basic functions.
"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," Petri said.
"Continued privacy and compliance concerns may however negatively impact growth in some regions, especially if providers are slow in bringing localized solutions to market."
During 2012, the spending on data centre outsourcing (DCO) is expected to decline 1% from its earlier growth of 34.5% in 2011.
Gartner research director Bryan Britz said the data centre outsourcing market is at a major tipping point, where various data centre processing systems will gradually be replaced by new delivery models through 2016.
"These new services enable providers to address new categories of clients, extending DCO from traditional large organizations into small or midsize businesses," Britz said.
The spending on application outsourcing (AO) segment is anticipated to report 2% rise to $40.7bn when compared to $39.9bn in 2011.
"Change is afoot in the AO market. The burdens of managing the legacy portfolio, along with the limitations of IT budgets, have shifted the enterprise buyers to be cautious and favor a more evolutionary approach to other application services, such as software as a service (SaaS)," Britz said.
"New applications will largely be packaged and/or SaaS-deployed in order to extend and modernize the portfolio in an incremental manner.
"While custom applications will remain ‘core’ for many organizations, the trend in the next few years to SaaS enablement in the cloud will reflect in the growth of the AO outlook."
Asia/Pacific region is expected to report highest growth in the ITO market, while the ongoing business slowdown due to sovereign-debt issues in Europe and slowing exports in China will affect the growth in both the regions.
Spending on ITO in the Asia/Pacific region is expected to rise 1% in 2012 and surpass 2.5% rise in 2013.
ITO growth in Western Europe is expected to decline 1.9% during 2012, the report revealed.
In North America, due to the customers’ seeking transition of more IT work to annuity-managed service relationships for cost take-out and IT costs, the ITO is expected to continue rising all through 2016.