Earlier this year, Everest Group conducted its annual study of high-value Infrastructure Outsourcing (IO) deals to gain insight into how a range of parameters correlate with deal activity in the IO market. The study, which is part of our Infrastructure Outsourcing Market Update 2012 report, analyzed 164 IO deals across a combination of 17 MNCs, Tier-1 offshore and Tier-2 offshore providers.
Infrastructure Outsourcing 2012 – Key Findings:
- Buyers: Buyers across geographies found increased value in offshore providers’ remote infrastructure management outsourcing (RIMO) model due to its flexibility. Faced with the high costs associated with IO, buyers appeared very tactical in their approach. Analysis of the basket of IO spend showed clear signs of carefully planned allocation across traditional IO, RIMO and cloud-based services
- Service providers: Though MNCs remain by far the leaders in the IO market, offshore providers appeared to be steadily gaining ground in sales strategy as well as deal wins. We also observed similarities between MNCs and offshore providers on a number of parameters such as buyer segments, deal size and geographies
- Cloud-based services: As transformation of infrastructure is the major driver of cloud adoption across enterprises, we devoted an entire section in the study to cloud adoption in IO. Not surprisingly, cloud is helping buyers create a flexible and scalable infrastructure environment, with Infrastructure-as-a-Service (IaaS) solutions leading cloud adoption
Infrastructure outsourcing: On the cusp of transformation?
Overall, the IO market appears to be on the cusp of transformational change. IO seems to be showing the way not only in cloud adoption but also in how IT delivery and pricing models are transforming. The growth of IaaS says a lot about the IO’s impetus for buyers and providers alike.
To find out more about these trends, our analyses of and insights on the infrastructure outsourcing market, check out the Infrastructure Outsourcing Market Update 2012 report (a preview deck is available).