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Gartner Lowers Global IT Outsourcing Projections

by: Sarah Joson

Monday, August 19, 2013 | Outsourcing News |

Renowned tech research firm Gartner Research recently reduced its growth forecast for IT outsourcing this year as companies are seen spending less. It is reduced to 2.88 percent, which equates to $288 billion in total IT outsourcing spending.

Global IT Outsourcing Forecast

Gartner Research Vice-president Bryan Britz identified some challenges faced by the industry. These include the shift in information technology outsourcing (ITO) delivery models, political, economic, and labor environment in outsourcing destinations, and the financial track record of providers. He also noted that 2013 will be similar to 2012 for the Asia-Pacific and Western European markets.

The IT segments that are experiencing growth are cloud technology and data centers propelled by small to mid-sized businesses that are making use of infrastructure as a service (IaaS).

Meanwhile, emerging markets such as Asia-Pacific, Latin America, and Greater China are predicted to grow as high as 13 percent from 2013 to 3014.

However, data from the Information Services Group revealed that hundreds of global outsourcing contracts will expire this year, with a total value of $21.2 billion - 75 percent of the total are IT outsourcing deals.


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