Published: 19 July 2000
Analyst(s): Claudio Da Rold, Richard T. Matlus
Management Summary This Strategic Analysis Report was initially written to address price and cost issues for data center outsourcing (DCO) in Europe. However the findings are also valid globally. Hence, this report has been updated to apply to all countries. The outsourcing sector is one of the fastest growing parts of the IT market. Gartner evaluated that the worldwide IT outsourcing market (excluding business process outsourcing) in 1998 was a business of around $88 billion, growing at a 16 percent compound annual growth rate. By 2003, this market will be $188 billion. While other areas may be growing faster then the DCO segment, DCO is the largest percentage of the market. DCO is also the most important outsourcing area for emerging or less-mature markets where enterprises often start their sourcing strategies and service externalization from the data center or from their overall infrastructure. For example, in Italy, the main DCO providers gather around 800 billion lire from this market segment, which accounts for 50 percent or more of their outsourcing revenue in some cases. Generally, the DCO market is defined as the most mature commodity service in the outsourcing market. Nevertheless, lack of standardization, vendor market strategies and client approaches to outsourcing make it difficult to build a good deal. This report analyzes some of the concepts at the base of a DCO deal: o Client expectations and point of view compared with vendor expectations o Role of the major outsourcing factors (e.g., economies of scale, standardization and best practices) o Vendor tactics on economies of scale, and deal and service shaping o Client requirements (in terms of roles and responsibilities), retained costs, risks and processes o Usage and the role of benchmarks in this kind of deal The different concepts and analysis included in this report are a drill down into the million of instructions per second (MIPS) outsourcing realm in terms of cost...
©2020 Gartner, Inc. and/or its affiliates.
All rights reserved.
Gartner is a registered trademark of Gartner, Inc. and its affiliates.
This publication may not be reproduced or distributed in any form without Gartner’s prior written permission.
It consists of the opinions of Gartner’s research organization, which should not be construed as statements of fact.
While the information contained in this publication has been obtained from sources believed to be reliable, Gartner disclaims all warranties as to the accuracy, completeness or adequacy of such information.
Although Gartner research may address legal and financial issues, Gartner does not provide legal or investment advice and its research should not be construed or used as such.
Your access and use of this publication are governed by Gartner’s Usage Policy.
Gartner prides itself on its reputation for independence and objectivity.
Its research is produced independently by its research organization without input or influence from any third party.
For further information, see
Guiding Principles on Independence and Objectivity.