By 2014, market consolidation will displace up to 20 percent of the top 100 IT services providers.A Nexus of Forces, including cloud, big data, mobility and social media, along with continued global economic uncertainty, will accelerate the restructuring of the nearly $1 trillion IT services market. By 2015, low-cost cloud services will cannibalize up to 15 percent of top outsourcing players' revenue, and more than 20 percent of large IT outsourcers not investing enough in industrialization and value-added services will disappear through merger and acquisition. This will limit and endanger the typical offshore/nearshore approach run by dedicated IT services providers and create low-cost options onshore or facilitate a globalized approach to staffing. CIOs should reevaluate the providers and types of providers used for IT services, with particular interest in cloud-enabled providers supporting information, mobile and social strategies.
Gartner Reveals Top Predictions For IT Organizations And Users For 2013 And Beyond
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