ISG Provider Lens™ report finds mature,
reliable tools for migration are also making enterprises more
comfortable with moving workloads away from in-house
infrastructure
U.S. enterprises have stepped up their adoption of private and
hybrid clouds in the past year, sometimes choosing them over public
clouds, according to a new report published today by Information
Services Group (ISG) (Nasdaq: III), a leading global technology
research and advisory firm.
This trend comes as the use of IT outsourcing has grown, with
many U.S. enterprises turning to managed services, managed hosting
and colocation services as they seek new ways of doing business in
response to the COVID-19 crisis, the 2021 ISG Provider Lens™
Next-Gen Private/Hybrid Cloud – Data Center Services &
Solutions report for the U.S. finds. ISG expects enterprise use of
outsourcing to continue growing.
The ISG Index™ shows first-quarter 2021 spending on
infrastructure-as-a-service (IaaS) rose 18 percent to a new global
record of $7.2 billion of annual contract value (ACV), a trend
mirrored in the Americas, which saw IaaS rise 14 percent, to a new
high of $3.5 billion of ACV.
After freezing their outsourcing programs in the first few
months of the pandemic, companies started adapting their IT
operations to deliver everything virtually, and many that had never
used outsourcing before began exploring it this year, the report
says.
“Organizations in the U.S. are starting to see that outsourcing
IT infrastructure management can help them realign IT with business
objectives,” said Jan Erik Aase, partner and global leader, ISG
Provider Lens Research. “It can also give them access to IT skills
not often found in typical IT departments. We expect companies to
continue increasing their use of outsourcing.”
U.S. enterprises are embracing cloud infrastructure and managed
services partly because more mature technologies make it easier to
take the leap, the report says. Tools for assessment, planning and
automation of cloud migrations have become reliable enough for
companies to achieve the outcomes they expected. It is also
becoming easier to understand the potential benefits of the cloud
and to choose which workloads to migrate and which to keep on
existing infrastructure.
When choosing outsourcing vendors, many U.S. enterprises are
focusing on flexibility, ISG says. They look for providers that can
scale resources up and down depending on client needs and
restructure teams quickly when necessary. Vendors should be able to
accept and adapt to the client’s business ethics and provide
offshore developer teams that can easily integrate with the
in-house team.
Close partnerships are becoming more important as companies
realize the challenges of finding reliable partners and
establishing productive relationships, the report says. The recent
trend of enterprises outsourcing an infrastructure assignment to
multiple vendors is fading in favor of choosing one or two partners
for a comprehensive managed services solution to address all
infrastructure requirements. This reduces risks and can lower
costs, ISG says. In addition, enterprises are favoring providers
that have strategic relationships with large technology
vendors.
The 2021 ISG Provider Lens™ Next-Gen Private/Hybrid Cloud
– Data Center Services & Solutions report for the U.S.
evaluates the capabilities of 57 providers across four quadrants:
Managed Services for Large Accounts, Managed Services for
Midmarket, Managed Hosting and Colocation Services.
The report names Ensono, IBM and Rackspace Technology as Leaders
in two quadrants each. It names Accenture, Capgemini, Cognizant,
CoreSite, CyrusOne, Cyxtera, DataBank, Digital Realty, DXC
Technology, Equinix, HCL, Hexaware, Infosys, Lumen, Mphasis, NTT
Ltd., TCS, Unisys, Wipro and Zensar as Leaders in one quadrant
each.
In addition, Mindtree, QTS and Rackspace Technology are named as
Rising Stars—companies with a “promising portfolio” and “high
future potential” by ISG’s definition—in one quadrant each.
A customized version of the report is available from
Hexaware.
The 2021 ISG Provider Lens™ Next-Gen Private/Hybrid Cloud
– Data Center Services & Solutions report for the U.S. is
available to subscribers or for one-time purchase on this
webpage.
About ISG Provider Lens™ Research
The ISG Provider Lens™ Quadrant research series is the only
service provider evaluation of its kind to combine empirical,
data-driven research and market analysis with the real-world
experience and observations of ISG's global advisory team.
Enterprises will find a wealth of detailed data and market analysis
to help guide their selection of appropriate sourcing partners,
while ISG advisors use the reports to validate their own market
knowledge and make recommendations to ISG's enterprise clients. The
research currently covers providers offering their services
globally, across Europe, as well as in the U.S., Germany,
Switzerland, the U.K., France, the Nordics, Brazil and
Australia/New Zealand, with additional markets to be added in the
future. For more information about ISG Provider Lens research,
please visit this webpage.
A companion research series, the ISG Provider Lens Archetype
reports, offer a first-of-its-kind evaluation of providers from the
perspective of specific buyer types.
About ISG
ISG (Information Services Group) (Nasdaq: III) is a leading
global technology research and advisory firm. A trusted business
partner to more than 700 clients, including more than 75 of the
world’s top 100 enterprises, ISG is committed to helping
corporations, public sector organizations, and service and
technology providers achieve operational excellence and faster
growth. The firm specializes in digital transformation services,
including automation, cloud and data analytics; sourcing advisory;
managed governance and risk services; network carrier services;
strategy and operations design; change management; market
intelligence and technology research and analysis. Founded in 2006,
and based in Stamford, Conn., ISG employs more than 1,300
digital-ready professionals operating in more than 20 countries—a
global team known for its innovative thinking, market influence,
deep industry and technology expertise, and world-class research
and analytical capabilities based on the industry’s most
comprehensive marketplace data. For more information, visit
www.isg-one.com.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20210629005955/en/
Press Contacts:
Will Thoretz, ISG +1 203 517 3119 will.thoretz@isg-one.com
Erik Arvidson, Matter Communications for ISG +1 617 874 5214
isg@matternow.com
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