Executive Briefings

Gartner Predicts End of Current Sourcing Model by 2015

Gartner's been gazing at its crystal ball again, and has forecast that service-led solutions - software as a service (SaaS), infrastructure as a service (IaaS), platform as a service (PaaS) and so forth - will displace more traditional sourcing methods by 2015.

The analyst house stresses that IT companies need to "bridge legacy offerings and new services" - again pointing a future to the cloud for service providers.

And cloud services appear to be growing at a much quicker rate than other elements of the IT services market. Hardware and software support will grow slowly compared to IaaS and BPaaS (business process as a service), which will grow 13.1 percent and 47.3 percent in 2013, respectively, according to Gartner.

There are three recommendations Gartner has for service providers this year; stopping undifferentiated marketing messages, emphasizing business value to "transform clients' existing operations"; improving service delivery by reinventing the service portfolio; and determining whether a business model is based on scale or specialization.

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The analyst house stresses that IT companies need to "bridge legacy offerings and new services" - again pointing a future to the cloud for service providers.

And cloud services appear to be growing at a much quicker rate than other elements of the IT services market. Hardware and software support will grow slowly compared to IaaS and BPaaS (business process as a service), which will grow 13.1 percent and 47.3 percent in 2013, respectively, according to Gartner.

There are three recommendations Gartner has for service providers this year; stopping undifferentiated marketing messages, emphasizing business value to "transform clients' existing operations"; improving service delivery by reinventing the service portfolio; and determining whether a business model is based on scale or specialization.

Read Full Article