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Anti-incumbency trend driving 40 pc churn in global IT infra market

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Abhigna
New Update

DALLAS, USA: Although traditional IT infrastructure service providers are racing to add automation and real-time data analysis capabilities to their portfolios, buyers are replacing incumbent service providers at an approximately 40 percent rate globally, reflecting competition from more agile competitors and newer, cloud-native service providers.

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These findings and others are detailed in a new research report published by Everest Group, an advisory and research firm on global services.

The report, Infrastructure Outsourcing - Annual Report 2013: Automating the Next Horizon, includes IT service market sizing (split across applications, consulting, infrastructure service, geography, and industry verticals). The report also offers market share statistics on leading IT service providers in applications, consulting, and infrastructure service.

"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," said Chirajeet Sengupta, practice director at Everest Group and leader of the report team.

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"Buyers are containing spend on traditional infrastructure services and investing more on next generation transformation."

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. These include resource needs, hiring policies and organizational structure.

This annual research dives deep 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.

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