2009 IS Outsourcing Market Review: Where the Growth Will Come From

This IDC study reviews the 2009-2013 Canadian infrastructure outsourcing forecast. Since the current economic recession began in December 2007, IDC has seen an increased adoption of alternative outsourcing service models such as software as a service (SaaS) and offshore infrastructure delivery or remote infrastructure management (RIM). This study assesses IDC's Canadian infrastructure outsourcing forecast in light of the current and anticipated interest in these services. The long-standing, traditional belief is that bad economic times are good for outsourcing and that recessions result in larger pipelines and eventually increase revenue and profits for the industry. IDC supports this line of thinking to a certain extent. IDC has factored a slight rise in outsourcing activity in our forecast, leading infrastructure outsourcing to approach C$7.3 billion by 2013, a 3.5% year-over-year growth.

"While on the surface it may appear that a bad economy is good for outsourcing, we have not seen an increase in contract signings," says Mark Schrutt, research director, Canadian Strategic Outsourcing Research. "This is similar to what we experienced in the recessions of 2001 and the mid-1990s. Both recessions, though, experienced rebound in signings once the recession was over, which may bode for the recovery."