• Gartner Analysts Explore How to Evolve IT Operations at the IT Infrastructure, Operations & Cloud Strategies Conference 2019, May 6-7 in Mumbai, India
BPO is the segment where Indian end-user organizations will increase their IT services spending the most in 2019. End-user spending on BPO is on course to reach $1.7 billion in 2019, and is forecast to reach $1.9 billion in 2020 (see Table).
IT Services End-User Spending by Segment, India, 2018-2020 (Millions of Dollars)
| Segment | 2018 | 2019 | 2020 |
| Consulting | 3,373 | 3,782 | 4,362 |
| Managed services and cloud infrastructure services | 5,537 | 5,946 | 6,605 |
| Business process outsourcing | 1,451 | 1,660 | 1,941 |
| Implementation | 3,232 | 3,535 | 3,985 |
| Total | 13,593 | 14,923 | 16,893 |
Source : Gartner (May 2019)
Crowdsourcing, Home Working/Teleworking and the “Gig Economy” Are on the Rise
Gartner analysts expect that crowdsourcing, working at home (WAH)/teleworking, and the “gig economy” will account for 40% of the customer management (CM) BPO workforce by 2021, up from 7% in 2017. By 2021, it will account for an estimated 900,000 people.
“Most of this workforce — nearly two-thirds — will be employed by CM BPO service providers, while the rest will be employed by end-user companies directly,” said Roy. “A key benefit of crowdsourcing, WAH/teleworking and the gig economy is access to specialized talent that may not all reside in the same area or that may be unwilling to commute to a central location to work.”
In addition, this model helps mitigate some other business risks, by, for example, providing clear benefits from a business continuity perspective and helping attract buyers from a corporate social responsibility perspective.
Managed Services and Cloud Infrastructure Services Continues to Grow
In 2019, managed services and cloud infrastructure services remains the biggest segment in terms of spending on IT services in India, accounting for close to $6 billion. The segment represents 40% of the end-user spending on IT services in India.
“We have identified a shift in how organizations adopt cloud technologies,” said Roy. “Organizations in India are increasingly looking to acquire not only cloud infrastructure as a service (IaaS) resources themselves, but also the automated management of those resources, management tools delivered as services, and cloud software infrastructure services.” As a result, Gartner analysts expect that, while IaaS-only cloud providers will continue to exist, they will become increasingly niche due to the breadth and depth of service offerings that end-user organizations require.
