Short break out:
"the fastest growing segment of outsourcing--cloud computing services--is expected to nearly double from $3.4 billion in 2011 to $5 billion this year. Even more notable--infrastructure-as-a-service (IaaS) will contribute 38 percent of the increment outsourcing growth in 2012, compared to 8 percent in 2011. "This is reflective of how difficult the current market is for established IT outsourcing services--like data center outsourcing--and the providers of those services," Britz says. "There is definitely some displacement or substitution of cloud for what might have otherwise been delivered through more traditional outsourcing models taking place.""My comment:
Even if I don't fully agree in the state "fastest growing segment of outsourcing--cloud computing services" (because my opinion isn't that cloud services is an ITO segment) I agree with Gartner in this prediction. It’s very important ITO providers start to prepare to handle cloud services and integrate them in their offerings/customers solutions. You can't sit "fat and happy" and say: customers will continue to buy traditional ITO and ITO services (ITaaS) for many years. When "many years" ends it's too late to transform. You have to become an Orchestrator/Aggregator of services from many sources. I really don't understand why ITO's having such big problem to understand this?! Maybe because too many decision makers, boards etc can't tell the difference between traditional ITO, ITaaS, SaaS and cloud?! I do believe so.