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Canadian Offshore IT Services Forecast, 2015-2019

Canadian Offshore IT Services Forecast, 2015-2019

  • September 2015
  • 10 pages
  • ID: 3334683
  • Format: PDF
  • By IDC

Summary

Table of Contents

This IDC study provides the market forecast for Canadian offshore IT services for 2015-2019. IT offshoring still makes solid business sense. In The Economic Impact of IT Offshoring on Canada: An Executive Viewpoint (IDC #CA4EMC14, November 2014), we found that the net economic impact due to IT offshoring is a gain of C$11.0 billion over the 2001-2013 period. This figure is forecast to increase to C$13.1 billion for the 2014-2018 period. Virtually every Canadian company is impacted by offshoring, whether it is the raw materials needed to manufacture products or additional distribution channels to expand sales. And while IT offshoring is slowing down, it is continuing and will continue to be a key component of IT delivery. IDC's research has found that leading companies approach offshoring as a strategic component of their overall business plan. Offshoring strategies include ongoing evaluation of new markets and their importance to the company, among other things. Leading companies also learn from their offshore experiences, both positive and negative, and invest in broadening their markets, reshaping their operations, enhancing their products, and improving the services they deliver. Overall, IDC Canada has made significant changes to the offshore IT services forecast for 2015. Canadian offshore IT services spending has been adjusted downward by approximately 17% from the 2013 forecast. Offshore IT services spending in 2014 is estimated to have reached approximately C$3.3 billion, a 14.5% increase from 2013. At the end of the forecast period, spending is projected to reach C$4.7 billion."Led by changes in what was included in this market segment and coupled with the market and economic conditions impacting the market, the forecast has been reduced in 2015," says Jim Westcott, research manager, Application Solutions.

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