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Cloud driving outsourcing market growth

Simon Quicke

Infrastructure as a Service (IaaS) specialists are going to be in the driving seat as the market for outsourced services continues to grow fueled by interest in the cloud.

The latest figures from Gartner forecast the outsourcing market being worth $251.7bn worldwide by the end of this year, a 2.1% improvement on last year.

Of all the different areas the cloud compute services is developing quickest growing by 48.7% this year to a value of $5bn with IaaS driving that surge in spending.

"Today, cloud compute 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," he warned.

Data centre outsourcing will not replicate the growth of last year and will dip by 1% as the industry transitions between different processing systems and the application outsourcing space will only produce modest growth of 2%.

Gartner also warned that globally Europe would not perform as strongly as the Far East because of the diffiuclt economic conditions that continue to plague the Eurozone.


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