Menu
Outsourcing growth outstrips overall services

Outsourcing growth outstrips overall services

The outsourcing sector grew 6.9 percent year on year in 2008, and is set to outpace overall IT services growth for the next five years, says an IDC report.

The market is forecasted to reach just over $1.5 million in 2013, a compound annual growth rate of 4.5 percent in the next five years. It is expected to comprise 47.6 percent of the IT services market by 2013.

The analyst firm says maintaining a tight IT budget has replaced a shortages of skilled labour as the main reason to outsource.

"In this time of uncertainty, most organisations, government agencies included, developed a preference for outsourcing and managed services. This is driven by end users' favour for predictable periodic expenses and potential cost savings from vendors' economics of scale," says Adam Lee, IDC Associate Market Analyst for the New Zealand IT Services market.

The reports suggests there is a continuing prefernce for discrete outsourcing, rather than enterprise-wide outsourcing.

Lee says there is increasing pressure on vendors and service providers to help customers ride the economic storm through technology or by better servicing customers' business needs.


Follow Us

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.

Tags outsourcingIDC

Featured

Slideshows

EDGE 2018: Kiwis kick back with Super Rugby before NZ session

EDGE 2018: Kiwis kick back with Super Rugby before NZ session

New Zealanders kick-started EDGE 2018 with a bout of Super Rugby before a dedicated New Zealand session, in front of more than 50 partners, vendors and distributors on Hamilton Island.‚Äč

EDGE 2018: Kiwis kick back with Super Rugby before NZ session
EDGE 2018: Kiwis assess key customer priorities through NZ research

EDGE 2018: Kiwis assess key customer priorities through NZ research

EDGE 2018 kicked off with a dedicated New Zealand track, highlighting the key customer priorities across the local market, in association with Dell EMC. Delivered through EDGE Research - leveraging Kiwi data through Tech Research Asia - more than 50 partners, vendors and distributors combined during an interactive session to assess the changing spending patterns of the end-user and the subsequent impact to the channel.

EDGE 2018: Kiwis assess key customer priorities through NZ research
Show Comments