BPO, or business process outsourcing, is the acronym of the moment according to Gartner regional service director Rolf Jester.
Speaking at the press launch of the Gartner Predicts conference in Sydney, Jester set an upbeat mood, forecasting continued growth in the outsourcing arena. Jester attributed this continued growth to the perception that, unlike in-house infrastructure, services can be turned on and off as required, making them a safer investment in an uneasy market.
"People don't want to put money into assets, or human capital, they would rather invest it as the finds become available," Jester said.
Craig Baty, vice-president of Dataquest Asia Pacific, described the IT services market as confused, stating that end users are divided as to whether outsourcing would provide increased efficiency or cost savings.
"This kind of confusion is typical of an immature market," Baty said. "While most Australian companies are aware of IT outsourcing, they are not sure how it will be implemented in their business."
Baty also suggested that IT companies should be pitching the IT services sale at CIOs rather than general management. Gartner is predicting impressive growth in the ASP area and warning of mass consolidation, with Jester suggesting that only 30 of the 81 local ASPs will survive the next 18 months.Photograph: Rolf Jester