Gartner Predicts Outsourcing IT Growth

Citing research from analyst firm Gartner Inc. which predicts that the North American IT outsourcing market will grow from $101 billion last year to nearly $160 billion by 2005, Loudcloud, Inc., , the Sunnyville, Calif.-based managed services provider (MSP), says that its customers will save close to $70 million during the life of their contracts.

The December, 2001 forecast found that driving this growth is the need for corporations to lower expenses in 2002 so they are increasingly outsourcing key IT projects including the management of their Web site infrastructure.

Research also says that IT spending is also being lowered by corporations decreasing IT assets and human resources while converting unpredictable costs into fixed costs.

In addition, Loudcloud also points to a report issued last year by Forrester Research, which found that corporations can save between 25 and 80-percent of their Web site infrastructure costs by outsourcing their Web site infrastructure to a service provider.

Loudcloud, which provides a suite of managed services to corporations, says its solutions simplify the outsourcing of an Internet site with a high degree of control.

These services are powered by its Opsware automation technology which Loudcloud says helps manage a diverse set of technologies critical to customers’ Internet operations.

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