Cloud Service Providers Challenge Traditional IT Outsourcing
Global IT services spending should reach more than $251 billion dollars this year, up 2.1 percent from 2011, according to Gartner’s latest IT outsourcing forecast. Adjusting for currency changes, that’s actually around a 4.1 percent increase in spending–about the same level of growth as the year prior, according to Gartner research director Brian Britz.
But the fastest growing segment of outsourcing–cloud computing services–is expected to nearly double from $3.4 billion in 2011 to $5 billion this year. Even more notable–infrastructure-as-a-service (IaaS) will contribute 38 percent of the increment outsourcing growth in 2012, compared to 8 percent in 2011. "This is reflective of how difficult the current market is for established IT outsourcing services–like data center outsourcing–and the providers of those services," Britz says. "There is definitely some displacement or substitution of cloud for what might have otherwise been delivered through more traditional outsourcing models taking place."…

