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IDC Research Suggests: Is A Crisis Looming For The Enterprise Wide IS Outsourcing Market?

  • 05 December, 2005 14:27

<p>NORTH SYDNEY, December 5th, 2005 - IDC's recent research shows that Enterprise Wide IS Outsourcing will grow at a 5 year CAGR (2004-2009) of only 2.6%.</p>
<p>IDC has released a 3Q update on the forecast for the outsourcing market in Australia for the period 2004-2009 (document #AU221234M). While the overall outsourcing market growth remains modestly healthy at 6.3% CAGR, growth for the Enterprise Wide IS Outsourcing market seems to have stagnated over the last 2 years.</p>
<p>"Reasons can be attributed to an increased use of discrete IT outsourcing by customers, reduced average size of deals, and continued downward price pressures resulting from the adoption of easier-to-use and cheaper technologies, and offshore service delivery. As a consequence of this, we are seeing a growth spurt in the discrete outsourcing markets such as Applications Management and Network and Desktop Outsourcing over the forecast period," says Aprajita Sharma IDC's Senior Outsourcing and BPO Analyst.</p>
<p>The traditional, large IT outsourcers in Australia are faced with a series of challenging conditions that are impacting their ability to continue healthy sustained growth in the coming years.</p>
<p>IDC believes that provisioning solutions with increased convergence of IT and BPO services, and building new revenue streams within the untapped small and medium business market, can aid these providers in increasing margins and offsetting potential competition.</p>
<p>Detailed assumptions on the forecast and a trend analysis has been presented in the report for 2004-2009.To purchase this study, please call the IDC sales team on +61 (0)2 9925-2226 or email Gary Clarke on gclarke@idc.com.</p>
<p>For press enquiries please contact:</p>
<p>Aprajita Sharma
Senior Analyst, Outsourcing and BPO
Email: asharma@idc.com
Phone: 61 2 9925 2257</p>
<p>Click here to view the press release online:
http://www.idc.com.au/press/detail.asp?releaseid=199</p>
<p>Click here to subscribe to IDC press releases and newsletters online:
http://www.idc.com.au/newsletters/register/</p>

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