IT Services Outlook 'Unpredictable,' Making Investment Decisions 'Difficult'

By Craig Galbraith Comments
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**Editor's Note: Click here to read about how salaries and the pace of hiring for IT workers are increasing.

IT decision-makers want stability as they consider what they'll be buying over the next five years. So say the researchers at Ovum – the technology analyst firm – who still have a lot of concerns about the economy in many parts of the world.

“The fact that we live in very uncertain times makes investment decision-making even more difficult," notes Jens Butler, principal analyst, IT services at Ovum. "With continuing instability across the global markets and even in locations with historically robust growth such as China and India, the outlook for IT services in 2013 is unpredictable."

Ovum's new report, "2013 Trends to Watch: Bundled Outsourcing," looks at the phenomenon of IT services bundling and how it will influence the IT market in 2013.

“Enterprises will be looking for greater reliability in their IT usage and, as a consequence, [will seek] stability, capability and accessibility among their external service providers," Butler added. In line with recent trends, Ovum’s Bundling Index points to an increasing desire for longer-term commitments and extended-scope outsourcing engagements.

Ovum says in 2013, the push to fill out portfolios, especially across some of the newer technology arenas such as mobility, analytics, social and cloud, will continue to grow and a lot of vendors will look to take advantage of this desired technology adoption, even if it means looking to a single supplier to deliver these services.

Butler recommends that enterprises work to ensure that bundled services do not become yet another “black box" style engagement, and says they should invest in governance experience and solid vendor management models. He also suggests that vendors broaden their existing portfolios to prepare for the potential upswing late in the year.

Follow editor @Craig_Galbraith on Twitter.

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