Outsourcing becoming 'dominant' in IT services - Gartner

The imperatives for outsourcing business processes remain constant, says Gartner, which sees growth in 'selective' deals continuing

Outsourcing will continue to be the catalyst for growth in the IT sector as its popularity continues with companies of all sizes, said US research analysis firm Gartner.

According to Gartner, outsourcing will eventually account for 53 percent of the total global IT services market by the end of 2004, rising to 56 percent by 2007.

Gartner presented its findings in the 2004 Outsourcing Summit held in the US this week.

Research vice president for Gartner, Allie Young, said outsourcing is fast becoming the "dominant" means for business to employ IT services.

"The outsourcing industry continues to evolve, but the imperatives for enterprises that are considering outsourcing are constant -- focus on core business, access to critical technical expertise and optimised IT operations," said Young.

Gartner stated that business process outsourcing (BPO) is also becoming an area of growth, as it states all-inclusive multiyear outsourcing contracts are being traded in for shorter-term "selective" deals.

The trend towards offshore sourcing is also increasing, Gartner said, as the global delivery model for IT services is becoming known as the cheaper alternative in the industry.

"A global delivery model means that enterprises can use IT resources from anywhere in the world to ensure that they have the right skills at the right price at the right time, with managed risk," said Young.

ZDNet Australia reported from Sydney. For more coverage on ZDNet Australia, click here.