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Global ITO Spending to Exceed $251B this Year

by: Sarah Joson

Friday, August 10, 2012 | Outsourcing News |

According to research and analyst firm Gartner, global spending on IT services increased 2.1 percent from last year’s $246.6 billion and is predicted to reach $251.7 billion by the end of 2012.

The cloud feature under the infrastructure as a service (IaaS) segment was identified to be the fastest-growing division of the information technology outsourcing (ITO) market.

Cloud-related services are projected to increase 48.7 percent this year, from $3.4 billion in 2011 to $5 billion this 2012.

Gartner Research Director Gregor Petri said cloud computing is currently used for the automation of basic processes, but as time passes, cloud services will be utilized for business applications and upgrading of current automated operations. The cloud will also increase in value and purpose for companies.

Meanwhile, some of the challenges seen for the cloud segment in several regions are still related to data security and privacy, as well as compliance. Furthermore, data center outsourcing (DCO) accounts for 34.5 percent of the ITO market.
Data center outsourcing (DCO), a mature segment of the ITO market, represented 34.5 percent of the market in 2011, but growth is anticipated to sow down by one percent in 2012.

Bryan Britz, another Research Director at Gartner, said data center outsourcing is set to be upgraded with new delivery models by 2016. By that time, providers will be able to cater to other types of clients.



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