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Anti-Incumbency Trend Driving 40 Percent Churn in Global IT Infrastructure Market – Everest Group Report
  • USA - English


News provided by

Everest Group

Nov 26, 2013, 08:00 ET

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Chirajeet Sengupta, Practice Director, Everest Group
Chirajeet Sengupta, Practice Director, Everest Group

Dallas, Texas (PRWEB) November 26, 2013 -- 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.

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

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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. It provides IO buyer adoption trends across geography, industry verticals, and revenue size. Finally, the report identifies key trends shaping the IO market, including automation, competition and demand for real-time analysis, and an outlook for 2014.

"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. "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.

Everest Group’s annual research on infrastructure services provides fact-based perspectives on buyer adoption by geography, industry, and revenue size. It analyzes major trends that are shaping the infrastructure services market and the outlook for the next year. It also sizes the IT services market in terms of application outsourcing, infrastructure outsourcing, and consulting services.

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.

PEAK Matrix™ Forthcoming

Everest Group will publish a PEAK Matrix of IT infrastructure service providers in December. Each PEAK Matrix provides an objective, data-driven comparative assessment of third-party outsourcing service providers specific to a market segment. The IT Infrastructure PEAK Matrix will be available via the Everest Group research page.

About Everest Group

Everest Group is an advisor to business leaders on the next generation of global services with a worldwide reputation for helping Global 1000 firms dramatically improve their performance by optimizing their back- and middle-office business services. With a fact-based approach driving outcomes, Everest Group counsels organizations with complex challenges related to the use and delivery of global services in their pursuits to balance short-term needs with long-term goals. Through its practical consulting, original research and industry resource services, Everest Group helps clients maximize value from delivery strategies, talent and sourcing models, technologies and management approaches. Established in 1991, Everest Group serves users of global services, providers of services, country organizations and private equity firms, in six continents across all industry categories. For more information, please visit http://www.everestgrp.com and research.everestgrp.com.

Andrea M. Riffle, Everest Group, http://www.everestgrp.com, +1 954-801-8474, [email protected]

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