Seeing the Future of IT Infrastructure

Global services predicts that the IT Infrastructure space will come to outsource more and more to offshore players.

Traditionally, infrastructure outsourcing carried with it the burden of “transfer of assets” with the provider taking on the assets and people of the customer company. However, going forward, customers are more likely to be lured by offshore players who are leveraging enhancements in communications infrastructure, remote-management tools and labor-cost arbitrage.

Offshore IT-infrastructure service providers are creating a new business model to tap into the $80 billion opportunity. By 2010, offshore providers are expected to have a market share of 20 percent, up from 3 percent in 2005. According to Everest Research Institute, these companies are growing at a 61 percent CAGR, while the traditional players are growing at 7 percent CAGR.

Click Here to know more about some considerations while offshoring your IT Infrastructure.

Though Global Services also predicts that:

The managed-services model will drive the market, and fewer and fewer companies will opt for the staff-augmentation model.

Companies that have so far outsourced only application development and maintenance will be the prime contenders for sourcing infrastructure services

Companies will look to source services such as server management, security and network monitoring and data-center management.

With MDS round the corner with the advent of outsourcing, smaller players will get more of the pie.