Introduction

Infrastructure Outsourcing Roadmap revisits the history of the Infrastructure Outsourcing (IO) market and develops understanding of the prevalent business models in this market (i.e., traditional outsourcing, Managed Services, Infrastructure Management Outsourcing (IMO)). This report also looks at the fundamental drivers of the new models (e.g. IMO), describes the entry of the offshore (mostly Indian) suppliers and their likely next steps and growth approaches. It discusses economic rationale behind traditional and IMO models of service delivery, defines the impact of labor arbitrage and offers a balanced view of the growth prospects and next steps for the market constituents. 

Scope

• Comprehensive background of the overall IO and the emerging IMO markets
• Key factors driving and inhibiting IMO adoption
• Likely IMO growth scenarios going forward
  

Contents

This IO Roadmap is divided into four sections: IO background, IMO background, Remote Infrastructure Management Outsourcing (RIMO) dynamics and IMO adoption scenarios. Each section contains key messages, with supporting data and analyses. For example, IO background contains the following insights:

IO market growth has been slowing down and is likely to continue sliding to ~4% CAGR in the next five years

• IO offerings today can be categorized into four groups based on deal characteristics. The four IO offering groups are: Infrastructure Outsourcing (IO), application hosting, Infrastructure Managed Services (IMS) and RIMO
• IMS and RIMO trends are close in nature with the major difference today in the scope, extent of labor arbitrage and the way the suppliers view and position it. Further, these models are converging; hence, we tend to think of them as one trend - Infrastructure Management Outsourcing (IMO)