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Forrester Predicts IT Market Transitions in 2012-2013

by: Karen Cayamanda

Thursday, January 12, 2012 | Outsourcing Research / Trends | Comments (0)

In the next two years, slower activity in IT spending will be seen as companies bounce back from the financial crisis, and there will be transition from using old technologies to adopting new ones. These are some of the market insights of technology and market research firm Forrester Research, as stated in their Global Tech Market Outlook for 2012 and 2013.

The IT market posted a 10-percent growth rate in spending back in 2011, according to Forrester Research Lead Analyst Andrew Bartels. This year, however, it will go down to five percent, but will bounce back by 2013 at eight percent.

A shift from old tech platforms to new ones will likely be seen in the next two years. New technologies will enable companies to be more productive and efficient particularly in decision-making processes. This transition will also result to an increase in demand for IT consulting, as companies that will be making the shift will need guidance on how they can benefit from using newer tech platforms.

The report also states that spending on mobile devices will grow to $28 billion by 2013. This can be attributed to the increase in spending on Apple products. There will be a decrease of three percent in spending on Wintel products this year, while cloud computing is seen to fuel growth of the software market.

Source:

http://www.information-management.com

IAOP's Outsourcing Predictions for 2012

by: Sarah Joson

Wednesday, December 28, 2011 | Outsourcing Research / Trends | Comments (0)

The International Association of Outsourcing Professionals (IAOP) recently released its top predictions or trends in the outsourcing industry for 2012.

The outsourcing industry is set to witness several changes in technology, market, as well as in terms of recession and even the elections. It is also anticipated that the US, nearshore countries, Brazil, Russia, India, and China will benefit the most next year.

The top outsourcing trends for 2012 are as follows:

Near shoring: The key driver for large firms to source in neighbouring countries or locally is the incentive and benefits- related efforts of the government.

Performance-based contracts: The client and provider will come up with performance-based contracts that will be widely used by various partnerships all over the world. Upfront relations such as customer support will also gain popularity, instead of the usual back-office setup.

New outsourcing destinations: Brazil, Russia, India, and China or BRIC will take the spotlight in 2012.

The dawn of new technology: Since technology has opened a lot of opportunities for various sectors, there's no question that the outsourcing industry will leverage each type of technological avenue to improve business processes, collect data, and even recruit new talent.

Security of the cloud: With the proliferation of the cloud come various security issues that may make or break a company. Providers and clients will definitely have a hard time keeping up with the trend and protect customer and company documents.

More mergers and acquisitions: The number of buyouts will definitely increase as appraisals dwindle and growth slows down for various sectors.

Hiring when needed: The sector is set to experience an increase in the number of candidates who specialize in improving the company's growth strategies.

Source:
http://www.marketwatch.com/

Global BPO Industry Predicted to Reach $280.7B by 2017

by: Karen Cayamanda

Thursday, October 13, 2011 | Outsourcing Research / Trends | Comments (0)

In a report by Global Business Analysts Inc. (GIA), it is predicted that the global business process outsourcing (BPO) industry will reach US$280.7 billion by 2017.

Business owners opted to outsource non-core functions to deal with the impact of the global financial crisis. This resulted to high outsourcing activity in destinations such as India and China.

Outsourcing has become a solution for companies, especially those in the US and UK, to resolve problems like lack of talent and the increasing operational expenses. Aside from cost reduction, outsourcing to service providers enables business owners to adapt to constant changes in the economy, make use of new technologies, and benefit from the emergence of newer media.

The market research entitled "Business Process Outsourcing (BPO): A Global Strategic Business Report" also states that finance and accounting outsourcing will likely post the fastest growth rate, to be driven by companies that need to keep costs aligned and stay competitive. Organizations in the fields of financial services, manufacturing, travel, as well as logistics are expected to avail of finance and accounting outsourcing services.

GIA is a leading market research publisher, covering market and technology trends worldwide.

Source:

http://www.sfgate.com

Forrester: Global IT Spending to Slow Down in 2012

by: Karen Cayamanda

Tuesday, October 11, 2011 | Outsourcing Research / Trends | Comments (0)

From 11.5 percent in 2011, the growth rate of global IT spending will weaken at 5.5 percent next year. This is due to the current economic downturn in the US and Europe, based on the recent Forrester Research report “Global Tech Market Outlook for 2011 & 2012”.

Slower growth rates are predicted in the US and European countries in 2012. For instance, the US will likely post 6.4 percent, while a 12-percent growth rate is expected in the markets of Eastern Europe, Middle East, Africa, as well as Latin America. Andrew Bartels, Vice President and Principal Analyst of the global IT market research firm, said the global IT market will grow, though at a moderate pace as the financial crisis becomes a cause of worry.

Despite this forecast, India’s industry body Nasscom President Som Mittal said there are still no signals of reduced IT budgets from companies. Software exports to the US and Europe account for almost 90 percent of the IT industry’s $70 billion revenue.

2011 would post better IT market growth than 2012, thanks to the strong IT demand in the first two quarters of the year before the financial crisis kicked off in the middle of 2011. That resulted in slower growth in the last quarter.

Source:

http://www.deccanherald.com

Gartner: Strategic Document Outsourcing in North America to Grow 2.8%

by: Sarah Joson

Thursday, September 29, 2011 | Outsourcing Research / Trends | Comments (0)

A 2.8 percent growth, from $17.2B (2010) to $17.6B (2011), is expected for North America’s strategic document outsourcing (SDO) market, according to global IT research and advisory firm Gartner, Inc.

SDO is a subcategory of business process outsourcing (BPO) that involves publication of customer communications, as well as content creation, multimedia presentation, and incoming document processing. The documents can be produced as hard copies or digitally, or a combination of both.

Gartner’s research director Pete Basiliere said the business climate of the rest of 2011 and next year will have an impact to the SDO market. If the financial crisis continues, companies may be forced to stop their in-house operations and decide to outsource, which equates to more revenues for service providers. The downside is companies may have concerns on transitioning. Closing an SDO deal at a time when they couldn’t afford to face any problems in the current operations is something that can also have an effect on the SDO sector.

Due to the demand for automated workflows, reasonably-priced long-term SDO contacts, and providers’ ability to supply inbound services revenue along other value-added SDO services, the inbound services segment anticipates resilient growth that started with a five-percent increase in 2010 to 2011, and an average of 6.5 percent revenue growth up to 2015.

Source:
http://www.4-traders.com/