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Outsourcing IT Services: Complete Sector Overview

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Topics under IT Outsourcing

Global IT Outsourcing Industry

Companies eager to benefit from a high level of IT expertise without the high costs of employing a full-time technology professional in-house are turning more and more to the IT outsourcing industry, part of the business services market. Companies often avail of these services during a new product or campaign launch, or during mergers and acquisitions.

The main bulk of business in the global IT outsourcing market involves US and EU companies outsourcing to the Philippines, and India and Japanese companies outsourcing to China.

Key Market Segments

The world data center monitoring systems (DCMS) industry is expected to exceed 8% yearly growth between 2010 and 2014, reports TechNavio. Market growth is fuelled by demand for advanced data center network management to limit operational costs. The DCMS market may face an obstacle in the form of open source infrastructure-monitoring software. Leading players operating in the market include HP, IB, CA Technologies, SolarWinds and NetScout Systems.

The world data center switching industry is expected to record 25% yearly growth between 2010 and 2014, reports TechNavio. Market growth will be fuelled by demand for superior data center management of rising network-related traffic. Due to the fast pace of technological development, end-users are holding off on purchasing equipment, which could prove an obstacle to market growth. Leading players operating in the market include IBM, HP, Cisco and Juniper Networks.

The world green data center market is expected to record 40% yearly growth between 2010 and 2014, according to TechNavio. Market growth will be fuelled by environmental concern regarding carbon emissions. Investment remains the main obstacle to market growth, as the initial outlay for green data center rollout is high. Leading players operating in the market include IBM, Dell, and Hewlett Packard.

The world data center rack industry is forecast to reach almost $1.23 billion in 2014, reports TechNavio. Market growth is fuelled by corporate demand for data centers, but delay in purchasing racks due to fast paced technological development may prove an obstacle to market growth. Leading players operating in the market include Rittal, HP, APC - Schneider Electric, and Emerson Network.

In a newly digitalized business world, less companies are using call center solutions, prefering to communicate with their fans and users through social media. However, the industry itself is still quite an important segment of the IT outsourcing processes.  

Regional Market Share

The EMEA market for data center outsourcing is expected to exceed yearly growth of 11% between 2010 and 2014, according to TechNavio. Market growth is fuelled by the need to cut the cost of data center operations and infrastructure. Data security concerns could prove an obstacle to market growth. Leading players operating in the market include IBM, T-Systems, Hewlett-Packard and Computer Science Corporation.

China’s next generation data center (NGDC) industry is forecast to record close to 25% yearly growth between 2010 and 2014, reports TechNavio. Market growth is fuelled by the need to increase time efficiency regarding data transfer through data center networks. Growth may be slowed by the fast pace of technological development and security and data piracy concerns. Leading players operating in the market include IBM, Brocade Communications Systems, Hewlett-Packard and 21Vianet Group.

North America’s data center automation solutions market is expected to record yearly growth in excess of 20% between 2010 and 2014, reports TechNavio. The market has seen a growing rate of adoption of private cloud-based data center automation solutions. Leading players operating in the market include IBM, CA Technologies, HP, and BMC Software. Data center outsourcing will expand at 12% a year in the same period. Key players include Dell, IBM, HP and Dell.

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Parent industry: IT Services
Related markets: Term Life Insurance, Outsourcing, Training, Software Development, Business Process Outsourcing, Telemarketing

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