Introduction

Infrastructure Outsourcing (IO) is witnessing high churn levels as there is an increasing level of dissatisfaction amongst the buyer community. Many buyers, who entered into long-term multi-tower contracts with service providers in the past, believe that such lengthy engagements have made their infrastructure environment lethargic and inflexible.

Buyers are containing spend on traditional infrastructure services and investing more on next generation transformation. The increasing adoption of cloud computing and Remote Infrastructure Management (RIM) is impacting the traditional market.

Further, buyers are investing in the automation of infrastructure and hence providers and IT organizations will need to understand the impact that automation will have on their business model (resource needs, hiring policies, organizational structure, etc.)

Everest Group’s annual research on infrastructure services provides fact-based perspectives on buyer adoption by geography, industry, and revenue size. It analyzes major trends that are shaping the infrastructure services market and the outlook for the next year. It also sizes the IT services market in terms of application outsourcing, infrastructure outsourcing, and consulting services.

Scope

• IT service market size (split across applications, consulting, infrastructure service, geography, and industry verticals)
• Market share of leading IT service providers in applications, consulting, and infrastructure service
• IO buyer adoption trends across geography, industry verticals, and revenue size
• Key trends shaping the IO market (automation, competition, and demand for real-time analysis)
• Outlook for 2014

Contents

This annual research deep dives into the infrastructure outsourcing landscape. It provides data-driven facts and perspectives on the overall market. The research covers IO adoption trends, demand drivers, in addition to buyer challenges, trends shaping the market, and also provides an outlook for 2014 for the broader IT as well as the IO market.

For example, the section on “IO Overview” analyzes the following:

• Deal trends (new vs. renewals)
• Deal size and duration
• Scope of services (datacenter and end-user computing)
• Pricing trends