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Prices of IT outsourcing to dip 20 percent
By siliconindia
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Tuesday, 24 March 2009, 18:06 IST |
2 Comments
Bangalore: The economic turbulence, constraints in the IT budget and competition between vendors will make IT outsourcing sheen to fade. Experts have predicted that the prices of IT outsourcing services will shrink 5 to 20 percent through 2010.
"This fall in prices will occur due to increasing competition in the market between traditional and new providers as more providers compete aggressively to keep revenue growth on target, while ensuring margins," Gartner said. The prices for application hosting services is expected to fall by 10 to 20 percent and for network services it is expected to fall 10 to 15 percent. It sees prices for data centre service dropping 5 to 15 percent and help desk services 5 to 10 percent.
"These are not 'price list reductions' but represent an overall price reduction on infrastructure outsourcing deals that may apply to new deals and, albeit only partially, to renegotiated deals," said analyst Claudio Da Rold.
