Gartner Research

Market Insight: Application Outsourcers Will Find Opportunity in Cloud Shift

Published: 27 September 2016

ID: G00294169

Analyst(s): Allie Young, Ed Anderson , Patrick Sullivan


Application outsourcing providers recognize the challenge ahead of them as enterprise clients shift to SaaS and cloud-based applications. AO product leaders have a growth opportunity to develop and promote AO offerings that support the management of clients' SaaS and cloud-based applications.

Table Of Contents


  • The Changing Nature of Enterprise Applications and the AO Impact
    • The AO Opportunity Shifts
  • What Clients Need: Managing SaaS and Cloud-Based Applications in the Enterprise Environments
    • Continuous Change and Innovation to Deliver Business Value via Modernization
    • Communicating Cloud Expertise and the Enhanced Value — Shift From Reactive to Proactive Strategies

Background and Context

  • Gartner Forecasts Validate Cloud Growth Rates Far Exceed "Traditional" IT Services Spending

The Impact

  • Five Action Items for AO Providers to Capitalize on the Cloud Shift
    • No. 1: Adopt a Cloud-First Engagement Strategy. Set a Priority to Establish a Specific Class of AO Offerings Focused on SaaS, PaaS and Cloud-Based Applications in the Enterprise
    • No. 2: Reposition, Refresh and Reorient Current AO Offerings
    • No. 3: Focus on Value and Results First. Create New and Explicit Value Propositions — and Metrics — for Your AO Offerings That Endorse "Cloud First" and Reach New Buyers
    • No. 4: Take a Life Cycle Approach to SaaS and Cloud-Based Application Management
    • No. 5: Align Application Portfolio Analysis and Modernization Efforts to Offerings for SaaS/Cloud


  • The Bottom Line — AO Providers Must Drive, Define and Determine the Outcome
    • Embrace "The Cloud Shift" to Set Your New AO Strategy

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