IT Outsourcing Vendor Will Reap $7 Billion in the Next Two Years - Research Reports Now Available. The US Enterprise IT Outsourcing Market will grew 20%, from $46.3B to $55.5B in the next two year....
January 6, 2006 (Press Release) --
IT Outsourcing Market
IT Outsourcing Vendor Will Reap $7 Billion in the Next Two Years - Research Reports Now Available
The US Enterprise IT Outsourcing Market will grew 20%, from $46.3B to $55.5B in the next two year according to a new research report published by the InterUnity Group. While the Onshore market will grew by 5%, the Off-shore market will grow 11 times faster at 55%. A total of $7.8Billion will be shifted Offshore increasing the Offshore total to $21.7B in 2005. Enterprises will shift $930 Million of this growth to wholly owned Off-shore subsidiaries.
Concord, MA December 17 2003-The US Enterprise IT Outsourcing Market will grow 20%, from $46.3B to $55.5B in the next two year according to a new research reports published by the InterUnity Group. While the Onshore market will grow by 5%, the Off-shore market will grew 11 times faster at 55% (Figure 2). A total of $7.8B will be shifted Offshore software development increasing the Offshore total to $21.7B in 2005. Enterprises will shift $930 Million of this growth to wholly owned Off-shore subsidiaries.
Overall IT outsourcing growth will slow from 13% in 2004 to 7% in 2005. The slowdown in IT outsourcing growth is due to rapid market penetration and saturation.
The market for Onshore IT outsourcing from companies that currently outsource will decline by $3B from 2003 to 2005. This will be off-set by $4.6B growth in Onshore software outsourcing from companies that do not currently outsource. Combined net growth will be 5% in the domestic offshore outsourcing market.
The $21.7B growth in Offshore IT outsourcing will come from enterprises currently software outsourcing in US migrating Offshore (40%) and from enterprises that do not currently outsource (60%) but plan to in the next 24 months.
Not all of the growth in the Offshore outsourcing market is available to vendors. About 12% of Off-shore outsourcing will be performed through captive subsidiaries. This $1.7B segment in 2003 will grow to $2.7B by 2005.
The largest opportunities for Offshore outsourcing vendors comes from companies who have not yet done any IT outsourcing. The combined growth in Offshore outsourcing from this segment is $4.7B over the next two years.
Since two thirds of Offshore outsourcing is driven by a proactive cost reductions, vendor who can demonstrate significant cost savings to their prospects will win two thirds of the growth. The remainder will go to vendor who can align withprospects strategic enterprise needs for specific skill sets and industry expertise.
Conclusion
Vendor who clearly differentiate their offering have an opportunity to capture market share.
This article courtesy of [outsourcingconnections.com] You may freely reprint this article on your website or in your newsletter provided this courtesy notice and the author name and URL remain intact.
More Information vist: A software Outsourcing development blog page: http://www.tatvasoft.com/outsourcing%5C2005%5C05%5Cit-outsourcing-market.html
TatvaSoft - Software Development Outsourcing
http://www.tatvfasoft.com
Jim
IT Outsourcing Vendor Will Reap $7 Billion in the Next Two Years - Research Reports Now Available
The US Enterprise IT Outsourcing Market will grew 20%, from $46.3B to $55.5B in the next two year according to a new research report published by the InterUnity Group. While the Onshore market will grew by 5%, the Off-shore market will grow 11 times faster at 55%. A total of $7.8Billion will be shifted Offshore increasing the Offshore total to $21.7B in 2005. Enterprises will shift $930 Million of this growth to wholly owned Off-shore subsidiaries.
Concord, MA December 17 2003-The US Enterprise IT Outsourcing Market will grow 20%, from $46.3B to $55.5B in the next two year according to a new research reports published by the InterUnity Group. While the Onshore market will grow by 5%, the Off-shore market will grew 11 times faster at 55% (Figure 2). A total of $7.8B will be shifted Offshore software development increasing the Offshore total to $21.7B in 2005. Enterprises will shift $930 Million of this growth to wholly owned Off-shore subsidiaries.
Overall IT outsourcing growth will slow from 13% in 2004 to 7% in 2005. The slowdown in IT outsourcing growth is due to rapid market penetration and saturation.
The market for Onshore IT outsourcing from companies that currently outsource will decline by $3B from 2003 to 2005. This will be off-set by $4.6B growth in Onshore software outsourcing from companies that do not currently outsource. Combined net growth will be 5% in the domestic offshore outsourcing market.
The $21.7B growth in Offshore IT outsourcing will come from enterprises currently software outsourcing in US migrating Offshore (40%) and from enterprises that do not currently outsource (60%) but plan to in the next 24 months.
Not all of the growth in the Offshore outsourcing market is available to vendors. About 12% of Off-shore outsourcing will be performed through captive subsidiaries. This $1.7B segment in 2003 will grow to $2.7B by 2005.
The largest opportunities for Offshore outsourcing vendors comes from companies who have not yet done any IT outsourcing. The combined growth in Offshore outsourcing from this segment is $4.7B over the next two years.
Since two thirds of Offshore outsourcing is driven by a proactive cost reductions, vendor who can demonstrate significant cost savings to their prospects will win two thirds of the growth. The remainder will go to vendor who can align withprospects strategic enterprise needs for specific skill sets and industry expertise.
Conclusion
Vendor who clearly differentiate their offering have an opportunity to capture market share.
This article courtesy of [outsourcingconnections.com] You may freely reprint this article on your website or in your newsletter provided this courtesy notice and the author name and URL remain intact.
More Information vist: A software Outsourcing development blog page: http://www.tatvasoft.com/outsourcing%5C2005%5C05%5Cit-outsourcing-market.html
TatvaSoft - Software Development Outsourcing
http://www.tatvfasoft.com
Jim
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