Low-cost IT set for spike?
With economic uncertainty and the rise of the pay-per-use model, low-cost IT could be set for a surge in uptake, Gartner believes.


Low-cost IT could see a spike in uptake due to economic pressures, business uncertainty and the rise of the IT-as-a-service model, according to Gartner.
Companies could increasingly place their IT in the hands of services from emerging markets for cheaper offers, as economies in areas like Europe fail to get going, the analyst firm suggested.
The cost of IT will still drive business decisions in the coming years, said Claudio Da Rold, vice president and distinguished analyst at Gartner.
"As credit markets in the US and Europe remain challenging, end-user organisations are reducing costs by sourcing IT services from emerging countries and lower cost providers."
Not only will cost cutting initiatives, restructuring and the shift toward offshore outsourcing accelerate, but growth in emerging countries will also speed up, Da Rold claimed.
In turn, this will widen the gap between high-growth areas, such as Brazil, Russia, India and China, as well as those found in the Asia/Pacific region, and stagnant economies like Europe and North America, he explained.
Furthermore, the gap between low and high-cost IT providers will become more pronounced, he claimed.
Get the ITPro daily newsletter
Sign up today and you will receive a free copy of our Future Focus 2025 report - the leading guidance on AI, cybersecurity and other IT challenges as per 700+ senior executives
"This trend could drive a prolonged reduction in the unit cost of IT services, significantly affecting the IT services market by 2013," Da Rold added.
The shift towards pay-per-use services, and the proliferation of advertising of the model, could also spur on greater uptake of low-cost IT.
"If the scenario of low-cost IT accelerates in the next few years, we foresee a growing number of delivery models that could cut the cost of IT by a third or more," said Frank Ridder, research vice president at Gartner.
"This could lead to the emergence of viable low-cost IT providers."
Tom Brewster is currently an associate editor at Forbes and an award-winning journalist who covers cyber security, surveillance, and privacy. Starting his career at ITPro as a staff writer and working up to a senior staff writer role, Tom has been covering the tech industry for more than ten years and is considered one of the leading journalists in his specialism.
He is a proud alum of the University of Sheffield where he secured an undergraduate degree in English Literature before undertaking a certification from General Assembly in web development.
-
AI is helping bad bots take over the internet
News Automated bot traffic has surpassed human activity for the first time in a decade, according to Imperva
By Bobby Hellard
-
Two years on from its Series B round, Hack the Box is targeting further growth
News Hack the Box has grown significantly in the last two years, and it shows no signs of slowing down
By Ross Kelly
-
Nearly half of all digital initiatives still fail – here’s how you can learn from the ‘digital vanguard’ and deliver success
News With most digital initiatives are failing to deliver, CIOs are urged to work more closely with other executives
By Emma Woollacott
-
IT services spending set to surge in 2025 as CIOs shift to AI partner solutions
News Organizations are set to shift from buying generative AI solutions to implementing partner solutions, according to Gartner
By Ross Kelly
-
Magic quadrant for finance and accounting business process outsourcing 2024
whitepaper Evaluate BPO providers’ ability to reduce costs
By ITPro
-
Businesses still don’t know who’s accountable for AI at executive level
News Executives are unclear on where the buck stops in terms of AI management
By George Fitzmaurice
-
Gartner reveals the top trends for government technology use in 2024
News Five key areas that public sector CIOs will need to address to improve citizen services
By Emma Woollacott
-
Return to office mandates can be divisive - here are three things business leaders can do to help smooth the transition
Analysis With return to office mandates having sparked major spats between workers and employers, leaders need to consider how they can make changes attractive and effective
By George Fitzmaurice
-
Global IT spending set to reach $5 trillion in 2024 amid optimistic industry outlook
News IT spending growth in 2024 is expected to be more than double that of 2023
By George Fitzmaurice
-
What will drive IT spending in 2024?
In-depth Generative AI spending is unlikely to be high despite the hype, but sustainable technology will become a bigger priority.
By Rich McEachran