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

Doctors, experts call for ban on junk food ads, mandate warning labels

More than 30 doctors, medical scientists and public health professionals have urged the government to take decisive action against the aggressive advertising and marketing of junk food, calling for a watershed ban on advertisements for foods high in fat, sugar and salt (HFSS) and ultra-processed foods (UPF

Asiatic Lion population rises from 523 in 2015 to 891 in 2025

On World Lion Day 2026, environment, forest and climate change Minister  Bhupender Yadav celebrated India’s remarkable journey in lion conservation and reaffirmed the country’s unwavering commitment to protecting wildlife and biodiversity.   In a post on soc

Railways imposed ₹5.13 crore fine for food quality and hygiene violations

Indian Railways serve about 58 crore meals every year on an average. About only 0.0008% food quality related complaints are received on average. Based on complaints during the last three years, appropriate penal actions have been taken by IRCTC. Such actions include imposition of fines amounting to ₹5.13

STHAVAR: Why every Indian built asset needs a permanent digital identity

India has built digital systems for identity, payments, taxation, documents, logistics and public services. State governments, ministries, infrastructure agencies and urban local bodies have also created portals for land records, building permissions, project monitoring, property taxation and municipal s

Saksham Skill census identifies 22,000 job-ready candidates in one Mumbai ward

A first-of-its-kind AI-enabled skill census conducted in Mumbai`s H-West Ward has identified a potential livelihood pipeline of nearly 22,000 candidates, generated over 32,000 provisional job matches while revealing that 71.2 per cent of surveyed homemakers are willing to join the workforce, according to

GI tags: Scaling traditional wealth into global brands

Geographical Indication (GI) tags have emerged as a powerful tool for protecting India`s cultural heritage, while creating economic opportunities for local communities. By linking products to their place of origin, GI tags preserve traditional knowledge, prevent misuse, and enhance consumer trust. They h

Upcoming Conferences



-->

Archives

Current Issue

Opinion

Facebook Twitter Google Plus Linkedin Subscribe Newsletter

Twitter