Offshore Management of IT Infrastructure Hot, Traditional Outsourcing Still Dominates...

Offshore Management of IT Infrastructure Hot, Traditional Outsourcing Still Dominates Market, According to Everest Annual Report

Everest's IT Infrastructure Outsourcing (ITO) Annual Report
Provides In-Depth Analysis of Fundamental Changes in Infrastructure
Outsourcing Market
DALLAS--(Business Wire)--
Remote Infrastructure Management Outsourcing (RIMO) continues to
be the darling model of the sluggish Infrastructure Outsourcing (IO)
market, according to the Everest Research Institute's IT
Infrastructure Outsourcing (ITO) Annual Report. Despite the overall IO
market's slow growth, predicted to crawl at a 4 percent (CAGR) growth
pace over the next five years, RIMO adoption is growing at
approximately 60 percent annually and is predicted to reach US $8.6
billion by 2010.

Although RIMO's adoption rate is soaring, RIMO only comprises one
percent of the overall IO market with the slow-growing traditional
solutions making up 75 percent of all infrastructure outsourcing
arrangements.

"Despite RIMO's growing popularity, IMS (Infrastructure Managed
Services) and traditional IO solutions may still be the better choices
for some organizations," said Ross Tisnovsky, Vice President, Everest
Research Institute. "The emergence of different delivery models have
brought new realities into the marketplace and shifted value creation
from asset-based play to innovation and labor-driven benefits. As new
models of IO emerge, buyers will now be able to choose between models
that help them align with their sourcing mandates and risk appetite."

The Institute's in-depth annual report analyzes the IO market
across five dimensions: (1) Infrastructure Outsourcing market overview
and delivery models; (2) asset ownership dynamics, including adoption
of "asset-light" model; (3) catalysts, forces and adoption scenarios
for Remote Management Infrastructure Outsourcing (RIMO); (4) role of
infrastructure and governance tools; and (5) optimal locations for
RIMO service delivery.

Other key insights of the study include:

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-- Asset-light outsourcing arrangements offer benefits to buyers and
suppliers. Buyers gain the benefits of better alignment of suppliers'
incentives with their goals. Suppliers view it as a solution to their
ongoing struggle to make the economics of asset-based outsourcing
workable.

-- Suppliers and tool vendors continue to invest in development of
infrastructure tools. Buyers view infrastructure management tools as
necessities, but they are more likely to consider governance tools as
competitive differentiators.

-- Infrastructure management tools have seen continued investments
by tool vendors and outsourcing suppliers, but there are no clear
winners.

-- The governance tools ecosystem is comprised primarily of
smaller suppliers and likely to witness the integration to
provide more robust solutions.

-- Remote Infrastructure Management Outsourcing (RIMO), is growing at
approximately 60 percent annually and is predicted to reach US $8.6
billion by 2010. An emerging Infrastructure Outsourcing (IO) model,
RIMO delivers services from offshore locations, including management
and service of computer networks, servers and helpdesk. RIMO's rapid
growth is driven by buyers who want enhanced flexibility in IT asset
ownership arrangements, increased control over IT service delivery,
and labor savings, among other benefits.

-- As RIMO adoption continues to gain momentum, the Institute has
analyzed 144 countries and short-listed 84 cities in 20 countries
that are suitable as RIMO centers to serve this demand.

-- For North American clients, Mexico and Brazil are clear leaders
with 25 cities that are likely to have relevant resource pool.

-- For Western European clients, Russia, Turkey, and Poland lead
the list with 18 cities that fit remote management center
requirements.
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To read more about the findings of the IT Infrastructure
Outsourcing (ITO) Annual Report, an extract of the report is available
at www.everestresearchinstitute.com. To purchase the report or receive
more information about other research services, please e-mail
info@everestresearchinstitute.com or call +1-214-451-3110.

About Everest Research Institute

Everest Research Institute (www.everestresearchinstitute.com)
serves as a central source of independent and objective strategic
intelligence, analysis, and actionable insight for leading
corporations, service providers, and investors in the global
outsourcing and offshoring marketplace. The Institute addresses both
business process and information technology sourcing topics, providing
the global outsourcing and offshoring community with information that
empowers highly productive, sustainable sourcing strategies and
relationships. The Institute's distinguished Board of Advisors, senior
executives and thought leaders oversee the Institute's research agenda
to ensure that it fully supports the business needs of corporations,
service providers and investors.

Everest Research Institute members receive access to unparalleled
analytical and advisory services, including access to Everest
analysts, in-depth reports on major outsourcing and offshoring topics,
white papers on market-shaping events, and Webinars designed to
provide insight and information about important market trends. The
Institute's wealth of knowledge and experience provides members with
unique perspectives into today's marketplace and the competitive edge
required to take advantage of emerging opportunities.

Everest Group is a global operational strategy consulting firm
with offices in such leading business centers as Dallas; Gurgaon,
India; London; Amsterdam; New York; Toronto and Melbourne. An industry
leader since 1991 when we created the sourcing consulting category,
Everest Group has earned a worldwide reputation for ongoing innovation
as we help clients achieve maximum value from their operations, which
includes sourcing strategy and implementation. Everest created the
Everest Research Institute as the central source of industry
information. Please visit www.everestgrp.com and
www.everestresearchinstitute.com for more information.

The Point Group
Scott Tims, +1-214-378-7970 x 278
Mobile: +1-214-957-6785
stims@thepointgroup.com
or
Laura Reina, +1-214-378-7970 x 238
Mobile: +1-214-206-5612
lreina@thepointgroup.com

Copyright Business Wire 2008