Growth back on agenda of IT outsourcing providers: Gartner

Predict the IT outsourcing services market will reach USD 313.2 billion in 2011

PTI | September 7, 2011



Growth is back on the agenda for IT outsourcing (ITO) providers, according to a survey by IT research and advisory firm Gartner, Inc. Sixty-two per cent of respondents identified growth as the top strategic goal this year, with aggressive marketing plans and investments in cloud, utility and 'as a service' offerings, it said in a statement.

"It is clear that providers are optimistic despite considerable uncertainty in the global economies," said Rolf Jester, Vice President and distinguished analyst at Gartner.

"However, we predict the ITO services market will reach USD 313.2 billion in 2011, a growth of 6.9 per cent from 2010, and will reach 4.6 per cent compound annual growth rate through 2015."

Gartner conducted an online survey in the first quarter of 2011 among 47 ITO providers, accounting for 62 per cent of the total ITO market.The respondents represented the full range of providers, all major geographies and all types of ITO services including infrastructure (data centre, desktop, storage and network), applications and cloud services.

"Many ITO providers are intending to commit serious marketing funds and target new accounts to outgrow the market,” said Bryan Britz, research director at Gartner.

The survey found at least 50 per cent of outsourcing providers said they would spend two to five per cent revenue on marketing in 2011, which is higher than the historical norm for marketing expenditure as a per cent of revenue (which has tended to be one per cent to three per cent for IT services providers).

At the same time, ITO providers continue to invest significantly more in sales than marketing as demonstrated by two-thirds of providers indicating sales expenses are greater than six per cent of revenue", it was stated.
 

Comments

 

Other News

Distinguishing Fish 1 and Fish 2: The pragmatism behind India’s WTO ratification

 India became the 123rd WTO member to ratify the multilateral Agreement on Fisheries subsidies (AoFS) when it deposited the Instrument of Acceptance for Phase 1 on July 20, 2026. The ratification is restricted to disciplining Illegal, Unreported and Unregulated fishing (IUU), protection for overfished

The 7% growth problem: Why the next 7% will be harder

India has become accustomed to hearing the 7% growth number. It is now less a milestone than an expectation. Yet the paradox is becoming clearer: maintaining 7% growth may be considerably harder than achieving it once. India’s real GDP grew 7.7% in FY2025–26, following growth of 6.5% in FY202

The Constitution cannot be altered: Justice Abhay Oka

Justice Abhay Oka, who retired from the Supreme Court in May 2025, has said that the Constitution of India cannot be altered. Explaining the landmark Kesavananda Bharati judgment (1973) on the basic structure of the Constitution, he said, “This is one judgment that has saved democracy in India.&rdq

How the flora and fauna evolved in the Indian subcontinent

Mammals of India  By A.J.T. Johnsingh and P.O. Nameer HarperCollins India in association with Bombay Natural History Society  

India`s renewable race is moving beyond megawatts

When Shell bought Sprng Energy in 2022, India`s renewable energy market appeared to offer precisely what global energy majors were seeking: scale, growth and a place in one of the world`s largest energy transitions. Four years later, Shell is selling the same business to Aditya Birla Group for an enterpris

Nepal Floods: India keeps close watch on the situation

India`s central government has been keeping a close watch on the situation arising out of the flash flood in Nepal on Wednesday. Union home minister Amit Shah spoke with the chief ministers of Bihar and Uttar Pradesh, the two states that share the border with Nepal, regarding the disaster

Upcoming Conferences



-->

Archives

Current Issue

Opinion

Facebook Twitter Google Plus Linkedin Subscribe Newsletter

Twitter