Category: business process outsourcing
Gartner Confirms the Growing Appeal of SaaS and Utility Computing Services
It is always gratifying to have the major research firms affirm my perspectives and THINKstrategies’ predictions.
Recently, Gartner predicted that the global outsourcing market will grow 8.1 percent in 2008, and that this growth would not be in the form of traditional IT and business process outsourcing (BPO) agreements, but fueled instead by growing the acceptance of Software-as-a-Service (SaaS) and other utility computing services offerings by companies of all sizes.
Let’s have some fun and do a side-by-side comparison:
According to Gartner, “publicly reported IT outsourcing (ITO) and business process outsourcing (BPO) contract values decreased overall by 50 percent in 2007.”In January 2002, I wrote in a NetworkWorld commentary that the traditional outsourcing model was dying. Even at that time, the size and duration of these deals was shrinking because their rate of success was abysmal.
As I’ve been stating for many years, companies … Read More »