The Remote Infrastructure Management Outsourcing (RIMO) market is likely to exceed US $8 billion over the next five years, according to a new report released today by the Everest Research Institute. The RIMO market, an emerging Infrastructure Outsourcing (IO) model, is growing at approximately 60 percent annually. The report is the first of a series of four studies to be released this quarter by the Institute’s newly formed ITO Research Group. Request free report.

According to the Infrastructure Outsourcing Roadmap report, 75 percent of this growth is attributed to renewals of pilot contracts with significant scope increases with the remaining 25 percent is attributed to new deals.

Everest says the benefits of RIMO for buyers include enhanced flexibility in IT asset ownership arrangements and increased control over IT service delivery.

"While the Infrastructure Outsourcing market appears calm on the surface and is growing in line with the overall IT industry," said Ross Tisnovsky, Vice President, ITO Research Group, "there are significant structural changes in the market itself that are driven by emergence of new technologies in infrastructure and fundamental changes in the IT asset ownership dynamics."

The report series will progressively build the picture of the IO market trends and dynamics through analyses of the effects on key market stakeholders relative to four key market developments:

• arrival of the labor arbitrage in the IO market
• changes in the asset ownership dynamics
• emergence of new business models in IO
• emerging global locations for offshore infrastructure management delivery

About the market research report

The Everest Institute report, "Infrastructure Outsourcing Roadmap", revisits the IO market history and reviews the prevalent business models in this market (traditional outsourcing, managed services and RIMO). After an examination of the fundamental drivers of the new models, such as RIMO, the study describes the entry of the offshore suppliers and their approaches to the market’s growth. The report also discusses the economic rationale behind traditional and RIMO models of service delivery, defines the impact of labor arbitrage, and offers a balanced view of the growth prospects and next steps for the market constituents.

Request the free report at the link below. Registration required.

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