Channel Marker

Aug 24 2012   8:13PM GMT

Cloud services are fastest-growing IT outsourcing segment

Heather Clancy Heather Clancy Profile: Heather Clancy

This isn’t likely to surprise anyone reading this blog post, but Gartner’s latest report on worldwide IT outsourcing pegs “cloud compute” services as the fastest-growing opportunity — on a pace to increase by nearly 50 percent this year to $5 billion (compared with $3.4 billion in 2011).

Managed service providers (MSPs) can take heart. One big driver of IT outsourcing contracts in North American is an interest in managed services relationships that help push out routine maintenance costs, according to the Gartner analysis. That focus will continue until probably 2016.

Here’s the requisite perspective as to why from Gregor Petri, a Gartner research director:

“Today, cloud compute services primarily provide automation of basic functions. As next-generation business applications come to market and existing applications are migrated to use automated operations and monitoring, increased value in terms of service consistency, agility and personnel reduction will be delivered. Continued privacy and compliance concerns may however negatively impact growth in some regions, especially if providers are slow in bringing localized solutions to market.”

Overall spending on IT outsourcing should increase about 2.1 percent this year compared with 2011, to reach $246.6 billion globally, Gartner predicts.

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