Gurgaon Biz .com - The Online Buzz of Business in Gurgaon

Gurgaon News - 2004

Outsourcing to form 53% of total global IT service market

Outsourcing will account for 53 percent of the total global IT services market by the end of 2004, rising to 56 percent by 2007, research analysis firm Gartner has said.

Gartner presented its report in the 2004 Outsourcing Summit held in the US this week. "The outsourcing industry continues to evolve, but the imperatives for enterprises that are considering outsourcing are constant -- focus on core business, access to critical technical expertise and optimised IT operations," said Allie Young, research vice president for Gartner.

Gartner stated that business process outsourcing (BPO) is also becoming an area of growth. The Grtner report said that all-inclusive multiyear outsourcing contracts are being traded in for shorter-term "selective" deals.

The trend towards offshore sourcing is also increasing, Gartner said, as the global delivery model for IT services is becoming known as the cheaper alternative in the industry.

"A global delivery model means that enterprises can use IT resources from anywhere in the world to ensure that they have the right skills at the right price at the right time, with managed risk," said Young.