According to a July 17, 2013 report by renowned research firm Gartner, the global IT outsourcing market is expected to hit U.S. $288 billion this year.
The report claimed that IT and technical support outsourcing spend this year will grow 2.8 percent in U.S. dollar, and 5.1 percent in constant currency, and added that emerging Asia-Pacific, Latin America and Great China markets are growing at over 13 percent.
Gartner Research Vice President Bryan Britz had the following to say in the statement:
“We continue to see overall market growth being constrained by near-term market factors, such as evolving IT outsourcing delivery models, economic, political and labor conditions, and service provider financial performance. Mature Asia-Pacific and Western Europe are the regions where the outlook is most tempered, partly due to currency but also reflective of our view 2013 is likely to be similar to 2012 in these regions.”
In addition to economic, political and labor conditions, Britz also addressed factors like cost-focused buyers, tighter IT budgets, and evolving outsourcing delivery models in the statement.
“Enterprise buyers pursuing hybrid IT strategies, and small and midsize business buyers adopting infrastructure as a service (IaaS), are key drivers in cloud and datacenter service segment growth rates,” explained Britz. “The global market size for datacenter outsourcing is in gradual decline due to workloads moving to IaaS and to infrastructure utility services exceeding the net-new adoption of datacenter outsourcing.”
The Gartner statement also noted a modest outlook for end-user outsourcing compared to past quarters, due largely to growth in purchases related to bring-your-own-device (BYOD) and reduced business support requirements for end-user devices. Gartner added that outsourced support for mobile end-user devices will see strong growth all the way up to 2017, fueled by growing business adoption of mobile devices.
The statement additionally claimed that IT outsourcing markets in the Asia-Pacific, Latin America, and Greater China regions will climb over 13 percent in 2013 and 2014, with these emerging markets bolstered both by incoming expansion from multinational corporations and positive overall economic conditions.
Gartner highlighted China, which it predicts will see high growth rates as multinational corporations gain traction in the local market. Gartner added that Chinese enterprises were increasingly adopting end-user-oriented services such as helpdesk or desktop services.
“In fact, the Chinese government is planning to implement incentive policies to encourage government entities and state-owned enterprises to outsource parts of their IT work to external service providers, which will help them focus on their core competence,” explained Britz. “This will also help create a more attractive market for service providers, which will in turn enhance supply-side drivers to fuel aggressive sales behaviors in the country.”
Here at Be Different Solutions, we have our own forecast on this topic:
If you decide to outsource your IT or technical support needs to a far-flung locale like China, complete with major cultural and language barriers, you’re likely to save some money in the short run – but pay dearly in many ways in the long-run, including financially. It’s happened in places like India in the past. A lot. So what’s to prevent the same problems from plaguing China-based outsourcing solutions?
That doesn’t mean, of course, that there isn’t a right, successful or valuable way to outsource your technical support needs. There is. And we at Be Different Solutions can show you just how it’s done.