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Firms spending more on services

CIOs worldwide will spend $633bn on external services this year, according to research firm IDC.

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Outsourcing

CIOs worldwide will spend $633bn on external services this year, according to research firm IDC.

The analyst firm predicts the services market will grow steadily at an average 6.9% until 2010, when it will peak at $866bn. Outsourcing – particularly business outsourcing and application management services – are driving this growth.

But the services industry is changing dramatically as globilisation, standardisation and automation shift the landscape.

“The most significant examples include the globilisation of services delivery, the standardisation phenomenon in the software industry, and new technologies that drive the automation of services in both the consumption and internal delivery processes,” says Sophie Mayo, director for worldwide services at IDC.

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