The outsourcing research and analysis firm NelsonHall recently released a forecast around market developments and IT Outsourcing (ITO) contract data in their ITO Index. The report shows that the IT services market is finally picking up steam after years of uncertainty, with this year’s spending in IT services showing growth for the first time since 2012. In addition, the third quarter of 2014 was a landmark one for the ITO market. Due to improved economic conditions, corporate clients are finally getting back into ‘investment mode’ and the ITO market has stopped shrinking.
Dominique Raviart, ITO Research Director at NelsonHall, commented that he believes spending has grown because corporate clients are, “looking to invest in slightly higher-scope ITO contracts, as well as increasing spending on long-term contracts.” Dominique also sees more customers looking to increase new-scope contracts and expand their range of services. This essentially paints a picture of much higher market confidence – a welcome sign after a challenging few years!
Looking ahead to 2015, the report warns IT service providers may not be out of the woods just yet. In fact, there’s still room for improvement as offshoring continues to drive prices down which results in lower-spending. However, NelsonHall predicts that in 2015 we’ll witness IT services increase by three percent as economic conditions continue to improve.
Professional services companies are well positioned to take advantage of this new market confidence as long as they prepare themselves now and ensure they’re equipped to provide their customers with the best possible experience. In order to maximize this potential, companies must be sure they have the right platforms in place to improve business processes, as well as the right people to provide a first class service. Implementing these platforms, coupled with the economic growth impacting spending from corporate customers, will position professional services organizations for a profitable 2015.
Learn how one top business and IT outsourcing firm, Slalom, leveraged Changepoint solutions to manage growth by streamlining and automating their entire engagement lifecycle here.
Also, feel free to share your thoughts on how the growing IT services and outsourcing market is evolving by commenting below or engaging with us on our Twitter handle @Daptiv.