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 GS100: 2011 Global Services Compendium
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Future Directions

An open technology and business environment, enabled by cloud computing and new outsourcing models, is creating a radically new approach to the present infrastructure market. Most of the global infrastructure services outsourcing providers have a strong vision and strategy for cloud-based services for future offerings.

According to the latest report by technology analyst firm Ovum, the global infrastructure market will grow 4.4 per cent by 2015. Ovum’s Infrastructure market trends research suggests that it will reach £463 billion by 2015 and will hit a 4.5 per cent growth rate by 2013.

Although 2011 growth is still not back to pre-recessionary levels, the market will return to healthy growth of over 4.5 per cent in 2013.

Cloud-based infrastructure services will continue to overshadow other services. It continues to be the most talked about service. Although most providers want to make the most of the cloud fever only a few are offering real public cloud solutions with high flexibility of changing baselines and pay-what-you-use pricing models. Some are offering  infrastructure managed services including public cloud solutions of third parties like Amazon or Google. IT infrastructure management and cloud solutions are converging rapidly. Gartner's Gartner estimates that over the course of the next five years, enterprises will be spending $112 B cumulatively on SaaS (Software as a Service), PaaS (Platform as a Service) and IaaS. United States, Western Europe and Japan will be holding a major share of the global cloud market.

The winds of industry consolidation are blowing again across different elements of the delivery supply chain with Atos Origin’s intention to purchase Siemens (SIS), iGate’s acquisition of Patni, as well as rampant acquisition at the level of cloud suppliers like Terremark and NaviSite.

In summary, several forces are slowly transforming the stable but growing market for infrastructure services, including the rising profile of offshore suppliers, maturing global delivery, productization of service and consulting offerings, and industry consolidation.

 

 GS100: 2011 Global Services Compendium
View Digital Magazine    Download PDF



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