U.S. Dominates ASP Market
The U.S. still dominates the global ASP market, according to a new Aberdeen Group report, “Worldwide ASP Spending. Forecast and Analysis 2001-2005.” Today, American ASPs are capturing two-thirds of the $3 billion spent on ASP services.
However, that dominance will lessen by 2005. The Boston, Massachusetts IT market analysis and positioning services firm estimates U.S. companies will only earn slightly more than half (54%) of the $16 billion spent.
That’s a healthy 52 percent compounded annual growth rate for an industry currently producing its share of bad news. That’s typical for a new industry that must undergo painful transitions until it finds its equilibrium, according to Lew Hollerbach, research director, service providers, for the Aberdeen Group. “The industry will settle down once it matures,” he predicts.
Hollerbach is sanguine about the future of the industry because he believes “the ASP value proposition makes a lot of sense. You don’t have to be a technologist to get it.” For that reason, he predicts ASPS will become “a healthy and important contributor to the IT landscape.”
Countries with well-established infrastructures will remain the ASP leaders for the current term. Just 14 countries will control over 90 percent of ASP spending. Today ASP use is a local choice. However, Hollerbach says U.S. multinational corporations are looking at multinational ASPs to meet their outsourcing needs.
Other findings include ASP spending tracks IT services expenditures in general.
Lessons from the Outsourcing Primer:
- ASPs will grow by 52 percent compounded annually through 2005.
- The U.S. currently dominates the global ASP market, enjoying a 66 percent market share. That percentage will fall to 54 percent by 2005.
- Just 14 countries will control over 90 percent of ASP spending.
About the Author: Ben Trowbridge is an accomplished Outsourcing Consultant with extensive experience in outsourcing and managed services. As a former EY Partner and CEO of Alsbridge, he built successful practices in Transformational Outsourcing, Managed services provider, strategic sourcing, BPO, Cybersecurity Managed Services, and IT Outsourcing. Throughout his career, Ben has advised a broad range of clients on outsourcing and global business services strategy and transactions. As the current CEO of the Outsourcing Center, he provides invaluable insights and guidance to buyers and managed services executives. Contact him at [email protected].