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Colombia IT Infrastructure Outsourcing Services MarketProduct Type: Market Research ReportPublished by: Frost & Sullivan Published: February 2007 Product Code: R1-5667 Description This Frost & Sullivan research service entitled Colombia IT Infrastructure Outsourcing Services Market provides an overview of the IT outsourcing landscape in Colombia, including revenue forecasts for the country along with a complete analysis of key market drivers, restraints, and trends that are impacting this market. In this research service, Frost & Sullivan's expert analysts thoroughly examine the following technologies: collocation/housing, dedicated hosting, storage, disaster recovery, and network management. Techologies The following technologies are covered in this research:
IT Infrastructure Outsourcing Services Market Witnesses Positive Growth Trend The Colombia IT infrastructure outsourcing services market is showing a positive growth tendency that is likely to continue in the medium to long term. Uptake of these services has followed an incremental pattern, with customers initially opting for simple solutions such as collocation and later progressing to value-added services such as storage and network management. As far as the service providers are concerned, they are able to offer more complete solutions as their knowledge of the customer base continues to increase on a daily basis. Solutions are developing and becoming more comprehensive also due to the entry of new participants and the growing competition between IT providers and telecommunications companies. This has driven the introduction of different solutions and services. "Although the offer is broader in scope, the fast market growth has led to restricted data center space, inhibiting growth rates and maintaining high prices," remarks the analyst of this research service. "High prices and cultural issues such as skepticism about allowing a third party to control processes and information continue to pose strong challenges to the Colombian market for IT infrastructure outsourcing services." Thus, the biggest challenge for companies will be to overcome customer perceptions with regard to price as well as convince them about the security and safety of entrusting their confidential information and processes to service providers. Adoption of Services Set to Increase among Medium-sized Companies In 2005, the Colombian market for IT infrastructure outsourcing services generated revenues of $89.3 million, representing a 20.1 percent growth over the previous year. In 2006, the market again grew by 29.9 percent to reach revenues of $115.9 million. Network management services accounted for the bulk of revenues, around 47.0 percent, primarily due to the size of the contracts as well as the scale of providers that focus on this segment. "The future market potential seems promising, as the confidence levels of both potential and existing clients in outsourcing services continue to increase," says the analyst. "The inclusion of medium-sized companies in the target customer base with the introduction of flexible solutions and on-demand services is also likely to contribute to market growth." Indeed, the participation of the mid-market is a growing trend in the market with providers beginning to develop solutions and applications aimed at addressing the needs of small- and medium-sized businesses (SMBs). This has coincided with rising awareness among SMBs of the important role played by IT in their organizations. However, for these solutions to become truly successful in the SMB market, they will need to become more affordable and accessible. The corporate sector will continue to remain a leading source of revenues and going forward, is expected to exhibit more demand for complex solutions. Companies in this segment are likely to begin entering total outsourcing contracts, which will result in greater business for IT providers. Table of Contents
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