This IDC study provides IDC's forecast for the worldwide and U.S. IS outsourcing services market for the 2012–2016 forecast period. This study highlights key assumptions and drivers that are creating significant changes in this market. IDC expects that at a worldwide level the ISO market will grow at a five-year CAGR of 2.2%, reaching $136.2 billion in 2016.

"IDC expects that the IS outsourcing services market, also many times referred to as datacenter outsourcing, will undergo significant changes in the coming years due to the increased pressure by customers to incorporate cloud/cloud-enabling services as part of IS outsourcing deals or to substitute traditional IS outsourcing services with cloud services, as well as increased competition by other providers offering cloud services such as infrastructure as a service (IaaS) and software as a service (SaaS) that can act as a replacement option," says David Tapper, VP, Outsourcing and Offshore Services at IDC. "With the expected decline in IS outsourcing services spending, players need to not only understand the major forces (quality of service, price and cost, risk, and regulations) that will drive the structure of a cloud provider and its ecosystem but also align their business models to the end state of what this structure involves, such as the need for an integrated digital services supply chain, a capital structure that aligns with that of a utility model, and a distinct business unit that will create an environment in which there is the freedom to build the right structures and capabilities to succeed as a cloud provider."