The Global IT Services Spending will Grow 8.7% In 2007

On September 20, according to the report from Gartner, though the economy growth in U.S. has slowed, the IT services will continue to grow strongly. The global IT services end-user spending is expected to be over 730 billion US dollars in 2007, with an increase of 8.7% compared with that in 2006.

Kathryn Hale, the vice president of Gartner said that many enterprises still focused on improving the internal processes and cutting costs, while the recent technical innovation investments were more extensive than that in the previous years, so as to provide two good reasons for IT services investments. The global delivery model would meet the two demands

The core outsourcing (IT management and process management) is still the fastest-growing areas of the market. In 2007, the core outsourcing services will account for 41% of the entire global IT services end-user spending. Process management services are normally outside the IT budget expenditure. IT management services have replaced the internal the IT spending. Therefore, the outsourcing market will grow frequently, even if limiting IT budget growth as well.

The development and integration of markets will continue to grow steadily. The global income of developing and integrating markets in 2007 will be expected to reach 225 billion US dollars, with an increase of 9% compared with the revenue of 206 billion US dollars in 2006.

Outsourcers will stir new software services market

Gartner analysts said that the transaction Google had made Capgemini to be its Google Apps official integrator, which showed that outsourcers would play an important role in the emerging software as a service (SaaS) market.

According to a foreign media report, Ben Pullin who works as an analyst in Gartner reported that the large professional services vendors would play an important role in developing SaaS market in the further. Earlier, they gave Saas a wide berth because of the impact to the existing business.

Last Monday, outsourcer Capgemini said they had launched a service to help large enterprises change from the desktop office software to Google Apps software packages.

Usually, for outsourcers, a large portion of the revenue is from helping the enterprises to manage and maintain the internal software, if a large number of enterprises adopt the service software, the business will be threatened.

However, Capgemini believes that SaaS means opportunities. Under the agreement, Capgemini will provide its outsourcing buyers with Google Apps Premier Edition - including Google Docs & Spreadsheets, Gmail, Calendar, Google Talk. Earlier this year, Google introduced Google Apps package and was more actively to contest the office software market with Microsoft.

Last Tuesday, Pullin launched a research report saying that if such a renowned outsourcing vendor as Capgemini decided to support SaaS, Google and SaaS market would therefore benefit from it. In the report, Pulin also commented, the only reason for standing together with Google was many of their large corporate customers were very interested in Google's application software.

Pulin said that if large enterprises were interested in Google Apps, and the SaaS services were provided by the renowned software vendors who had good records in software integration and management, the risk would be much smaller.