According to a recent survey conducted by the global sourcing advisory firm EquaTerra, cloud computing will largely impact the IT services marketplace in 2011. Cloud based services will dominate the market and will attract more and more contracts from growing Small to Medium Business.
Alongside growth and importance of cloud computing, other key findings of the survey include the waning demand for outsourcing in its traditional, legacy form with a focus on generic, horizontal IT and the bulk of mega-deals. IT outsourcing will continue to evolve and diversify in a more fragmented manner. Established outsourcing models are going to be replaced by more flexible ones with the following characteristics:
• Smaller in scale and scope
• Larger efforts and ambitions, pursued more incrementally
• Greater focus on more strategic activities and specific vertical industry services
• Greater focus on functional areas such as legal, research and development, and real estate and facilities management
• Greater standardization of offerings and platforms with a nascent but growing focus on cloud computing delivery models
• More realistic and tighter business cases
The business and IT service market has matured over the past five years and the outsourcing buyers and service providers with inveterate mindsets and operating models will find it challenging and even threatening to survive amid the current market changes.
Source: EquaTerra
Alongside growth and importance of cloud computing, other key findings of the survey include the waning demand for outsourcing in its traditional, legacy form with a focus on generic, horizontal IT and the bulk of mega-deals. IT outsourcing will continue to evolve and diversify in a more fragmented manner. Established outsourcing models are going to be replaced by more flexible ones with the following characteristics:
• Smaller in scale and scope
• Larger efforts and ambitions, pursued more incrementally
• Greater focus on more strategic activities and specific vertical industry services
• Greater focus on functional areas such as legal, research and development, and real estate and facilities management
• Greater standardization of offerings and platforms with a nascent but growing focus on cloud computing delivery models
• More realistic and tighter business cases
The business and IT service market has matured over the past five years and the outsourcing buyers and service providers with inveterate mindsets and operating models will find it challenging and even threatening to survive amid the current market changes.
Source: EquaTerra
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