Page 68 - DCAP307_PLANNING_AND_MANAGING_IT_INFRASTRUCTURE

Planning and Managing IT Infrastructure

Notes there is access to highly educated, well trained personnel whose wages are essentially lower
than in Western economies.
It is also far more productive and effective to have a team of people used as and when needed
rather than having full time developers being paid even when they are not required as can often
happen with software development projects. In fact the majority of software vendors have
software developers based outside of their country for this very reason.

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Caselet Global Spending on IT Outsourcing will Go up $5 b
This Year

Global spending on IT outsourcing services will go up by 2.1 per cent in 2012 to reach
$252 billion as against $247 billion.
However, the growth of data centre outsourcing business, which represented 34.5 per cent
of the outsourcing market in 2011, will decline by one per cent this year.
While there will be some impact from the ongoing business slowdown due to sovereign
debt issues in Europe and slowing exports in China, research and consulting firm Gartner
expects the outsourcing market in the emerging Asia-Pacific region to represent the highest
growth of all regions.
In North America, buyers will seek to transition more IT work to annuity-managed service
relationships for cost take-out and IT costs. “This will keep outsourcing growing through
2016. The reluctance of enterprises to hire or make large capital purchases, as well as their
pursuit of asset-light IT strategies, continues to push clients toward consuming externally
provided services,” Gartner has said in its latest report on outsourcing.
APAC Spending
Spending on outsourcing in the APAC region will grow by one per cent in 2012 and exceed
2.5 per cent growth next year. “The growth is being driven by the large inflow of capital
into Asia over the past three to five years, leading to the need among global and regional
businesses to scale up their operations,” it said.
A challenging economic scenario that worsened in late 2011 continues to affect government
policies and end-user sentiment in many key European countries. This could result in a
decline of outsourcing growth by 1.9 per cent in Western Europe this year.
The European public sector will continue to see a cautious budget environment throughout
the year. This will force many central and local government entities to concentrate on
outsourcing initiatives aimed at reducing cost through IT efficiencies and rationalisation.
Fast-Growing Segment
The fastest-growing segment within the outsourcing market is cloud services, which is
expected to grow by 49 per cent to $5 billion, up from $3.4 billion in the previous year.
“Continued privacy and compliance concerns may however negatively impact growth in
some regions, especially if providers are slow in bringing localised solutions to market,”
Gregor Petri, Research Director, said.
Source: http://www.thehindubusinessline.com/industry-and-economy/info tech/article3737853.ece?
ref=wl_industry-and-economy

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