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IT Outsourcing market is showing an average growth of 9% p.a.
IT Outsourcing Worldwide forecast (Million $)
Source :
Gartner Dataquest
In terms of volume, North America continues to be the leader in IT outsourcing.
? Latin America and APAC have shown good growth
? Europe has fast emerged as a big IT outsourcer
Global offshore spending is continuing to register double digit growth.
Worldwide Offshore IT Services Spending by Importing Region (million $)
Source: Gartner Dataquest, 2004 and Worldwide and U.S. Offshore IT Services 2006-2010 Forecast
n In terms of volume, the North America continues to be the leader in IT offshoring.
n Once averse to the idea of outsourcing, Europe is now steadily adopting an IT offshore model to boost the economy
n Global offshore spending is projected to increase to 29400 $ Million in 2010
The graph on the next page shows the potential market for various types of sourcing options. This clearly depicts that he IT and Business Process offshoring market has grown at a tremendous rate over the past 7 year and the market provides a huge potential which is yet to be exploited.
IT and BPO market
Source Gartner, Dataquest, Aberdeen Group, McKinsey, Evalueserve, Infosys, IDC and Nasscom strategic review 2008
q Currently we are not even exploiting 10% of the potential market size ( IT services off shoring just at $17 Billion, whereas market potential is about $200-240 Billion *)
q According to a new research by Gartner, the market is likely to grow further after the financial slowdown, as firms will try aggressively to reduce costs and improve efficiency
Different Sourcing Models
In-sourcing / Shared Services: Sourcing from internal sources or from an affiliated firm in the home economy
Onshore Outsourcing: Sourcing from a non-affiliated firm in the home economy
Captive Offshoring: Sourcing from an affiliated firm located abroad
Offshore Outsourcing: Sourcing from a non-affiliated firm located abroad
REGIONAL DYNAMICS ACROSS EUROPE
The following section will describe the regional ITO trends and local dynamics across different European locations.
UK and IRELAND
2005: €17.2B 2010: €25.7B 2005-2010 CAGR: 8.3%
ITO drivers: Improve IT quality for end users, speed/flexibility, access to technical skills, cost reduction Inhibitors: Loss of control, lack of trust, security/privacy, IP
Key trends:
? Most mature market in Europe with wider number of mega deals (public sector)
? Deal sophistication, including government. Increasing interest in new pricing schemes, business enhancement and shared servi±¾ÂÛÎÄÓÉÓ¢ÓïÂÛÎÄÍøÌṩÕûÀí£¬ÌṩÂÛÎÄ´úд£¬Ó¢ÓïÂÛÎÄ´úд£¬´úдÂÛÎÄ£¬´úдӢÓïÂÛÎÄ£¬´úдÁôѧÉúÂÛÎÄ£¬´úдӢÎÄÂÛÎÄ£¬ÁôѧÉúÂÛÎÄ´úдÏà¹ØºËÐĹؼü´ÊËÑË÷¡£