Thursday, January 10, 2008

Gartner Predicts Steady Growth for IT Outsourcing Market in 2008

The spending on third-party providers will increase by eight per cent this year both in the United States and in Europe, according to research by analyst Gartner.

The value of publicly-disclosed business process and IT outsourcing contracts dropped by 50 per cent during 2007, says the study. But as the market matures and becomes more commonplace, fewer deals may be reaching the world's press, suggested the analyst. Companies are outsourcing more, but electing to use a multi-provider strategy and so deals are smaller in size and less reported.

Gartner has identified 35 countries where IT directors could consider establishing their own software development and shared services operation, or where local service providers are beginning to sell services beyond their domestic market.

Gartner says Russian locations are providing “credible alternatives”. Others topping the list include Ukraine reconfirming its maturing market positions.

According to Ian Marriott, a research vice-president at Gartner and an expert in IT outsourcing, Belarus has begun carving a niche in application development services.

He also noted end-user businesses were increasingly factoring in proximity of time zones and ease of travel into their outsource requirements.

Sources: Computing ; ComputerWeekly ; Networkworld

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