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Gartner Says Industrialized Low-Cost IT Services to Transform the IT Services Market
The Gartner Group
Chief information officers (CIOs) should consider adopting industrialized, low-cost IT services (ILCS) to reduce the cost of running the business, while controlling the risk, integration and customisation issues, to increase the business value of IT and enhance its perception by the business, according to Gartner, Inc. CIOs said that delivering differentiation and additional business value, while reducing the cost of IT will be their business and IT priorities in 2011, according to the Gartner Executive Program (EXP) 2011 CIO agenda survey*.
“While there are multiple ways to reduce the cost of IT delivery, as well as to increase the value of IT, the trend towards ILCS will become paramount for end users to trade nonessential customisation for better and less expensive services,” said Claudio Da Rold, vice president and distinguished analyst at Gartner. Gartner predicts that despite being an embryonic market, by 2015 industrialised services will represent more than 30 percent of the IT services market and cloud services are expected to become a $177 billion market by 2015, of which $77 billion is based on advertising business models.