November 4, 2008

Everest Study: Convergence of Traditional Infrastructure Outsourcing and Remote Infrastructure Management Outsourcing Models More Pronounced

Institute Study Analyzes Almost 500 IT Outsourcing Deals

DALLAS, November 4, 2008 – The convergence between Infrastructure Outsourcing (IO) delivery models is becoming more pronounced as Traditional IO and Remote Management Infrastructure Outsourcing (RIMO) models are coming together in terms of deal characteristics, bundling trends and deal scope, according to a new study by the Everest Research Institute.

The Institute study, ITO (IT Outsourcing) Market Update: ITO Request for Information 2008 – Summary of the Results, includes analysis of 493 engagements, which represent RFI participants’ 25 largest deals.

Other high-level, study insights from the in-depth analysis include:

• Europe is emerging as the new battleground for Infrastructure Outsourcing
• ADM outsourcing: There are multiple signs of increasing maturity of the offshore model leading to growing similarity of the deals signed by multinational corporations and offshore suppliers
• India remains the key offshore delivery destination for ADM suppliers that appear to be further consolidating project delivery to single-region offshore locations as compared to 2006

“The study also examines bundling trends in ITO, finding that Business Process Outsourcing (BPO) and ITO deals continue to be an infrequent occurrence and usually results in smaller deals,” said Ross Tisnovsky, Vice President, Everest Research Institute. “On the other hand, stand-alone ADM and bundled deals occur most often with the IO/ADM combination commanding the largest share of annual contract value.”

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