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According to Gartner, the IT outsourcing market (including desktop, data centre, mainframe, networks, midrange/hosting and applications) was worth $193 billion in 2004 and will be worth an estimated $260 billion by 2009.

In the same breath, Gartner tells us that market share for the top ten IT outsourcers during 2009 will decline to 40 percent, equalling a revenue shift of $5.4 billion.* Gartner further says that discrete (i.e. internal) IT services market will shrink from 48 percent in 2004 to 43 percent of the total market in 2009, business process outsourcing (BPO) will increase from 19 percent to 23 percent, and IT outsourcing (ITO) will increase from 33 percent to 34 percent between 2004 and 2009.

In other words, the outsource market is growing, spend is moving away from internal IT to outsourced options, but the major outsourcers are going to lose market share.