Yearly IT outsourcing expected to reach $251.7 billion

By VAR_Staffing
In Channel
August 9, 2012

Article By VAR Staffing

Last August, Hurricane Irene made its way through Massachusetts and the East Coast, leaving broken trees and downed power lines. Stoughton, Massachusetts-based trucking and construction company Diesel Direct was able to outlast the storm, but the ordeal made owner Daniel Abrams realize a power outage would be devastating to his business.

Abrams was relying on an older system of paper invoices, fax machines and employee experience to make sure multiple orders were put out each day to keep the trucks running. Had Irene knocked the power out, business for Diesel Direct would have stopped until the lights came back on. With little technical knowledge and an old infrastructure, Abrams made a dramatic change by outsourcing data storage to a cloud computing system to make sure a natural disaster didn't derail his $300 million company.

The outsourcing approach that Abrams took is one that many companies are turning to. According to a new report from IT research firm Gartner, IT outsourcing is expected to reach $251.7 billion in 2012, a 2.1 percent increase from last year. Cloud computing, on pace to grow 48.7 percent in 2012 to $5 billion, is helping to push the increase in outsourcing.

"Change is afoot in the application outsourcing market," said Gartner research director Bryan Britz in a statement. "The burdens of managing the legacy portfolio, along with the limitations of IT budgets, have shifted the enterprise buyers to be cautious and favor a more evolutionary approach to other application services."

With the breadth of technology challenges that IT departments face, many IT Principals are looking for premium resources to help. Solution Providers are becoming increasing important to accomplishing IT tasks, like cloud computing, in the business world.

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Author: VAR_Staffing