Businesses are continuing to outsource their IT to third-party specialists, according to a new IDC report.
Research conducted by the firm indicates that the global Software-as-a-Service (SaaS) market is set to be worth £30 billion by 2014, compared to just £8.4 billion today.
The study found that fewer companies are choosing to buy traditional packaged software, instead preferring to pay for the IT tools they need on a subscription basis.
IDC predicts that 34 per cent of all new business software purchases will be consumed via SaaS by 2014 – potentially good news for the London IT outsourcing industry.
Emphasising the emerging trend, some 85 per cent of new businesses entering the IT software market are set to be SaaS-focused by 2012, the company found.
Robert Mahowald, vice-president for SaaS and cloud services research at IDC, noted that the SaaS model has quickly become mainstream and is helping businesses to reduce costs.
Earlier this month, Robert Whiteley, chief information officer of Forrester Research, told Networkworld.com that businesses may be able to cope with reduced budgets by outsourcing their IT.
Source:http://www.ihotdesk.com/article/800007898/IT-buyers-turning-to-SaaS-from-packaged-software
