The global spending for IT outsourcing (ITO) services is on pace to reach $251.7 billion in 2012, a 2.1 per cent increase from 2011 spending of $246.6 billion, according to a study by global research and analyst firm Gartner.
The fastest-growing segment within the ITO market is cloud computing services, which is part of the cloud-based infrastructure as a service (IaaS) segment. Cloud computing services are expected to grow 48.7 per cent in 2012 to $5.0 billion, up from $3.4 billion in 2011, it said.
Spending on ITO in the Asia/Pacific region will grow 1 per cent in dollar terms in 2012 and exceed 2.5 per cent growth in 2013. With the exception of Japan, Australia, New Zealand, and to a lesser degree, Singapore and Hong Kong, the countries in Asia/Pacific are quite new in terms of outsourcing usage, understanding and sophistication.
The growth is being driven by the large inflow of capital into Asia over the past three to five years, leading to the need among global and regional businesses to scale up their operations.
"Today, cloud computing services primarily provide automation of basic functions. As next-generation business applications come to market and existing applications are migrated to use automated operations and monitoring, increased value in terms of service consistency, agility and personnel reduction will be delivered", said Gregor Petri, research director at Gartner. "Continued privacy and compliance concerns may, however, negatively impact growth in some regions, especially if providers are slow in bringing localised solutions to market."
Data center outsourcing (DCO), a mature segment of the ITO market, represented 34.5 per cent of the market in 2011, but growth will decline 1 per cent in 2012.