Offshore service providers which fail to implement a cloud strategy will see their business models come under pressure, it has been claimed.
Gartner has warned companies operating in this sector that being slow, unable or unwilling to move to the cloud will impact on their revenue growth.
The IT analyst expects "continued strong growth" in public cloud services, with end-user spending on expected to grow 18 per cent in 2013 to total $131 billion (£85.3 billion).
By 2015, the public cloud services market is predicted to exceed $180 billion.
Gartner said that while increased investments in cloud-based services will differentiate the leading offshore providers from labour-intensive 'pure-play' offshore providers, they will need to maintain "a balanced portfolio of managed services and other traditional delivery approaches, in addition to horizontal and vertically-based cloud offerings".
The firm claimed this will allow them to compete successfully with leading multinational providers - by meeting the evolving needs of buyers - and drive the joint necessities of revenue growth and profitability.
"The initial resistance to public cloud has begun to subside and customers are beginning to realise its efficiencies as the solutions mature," noted Ian Marriott, research vice-president at Gartner.
"Cloud-based services will not replace offshore services, but will complement them."
He claimed that cloud services will not 'make or break' all offshore providers, but strategic investments are "mandatory" for those firms seeking "significant wallet share".
Earlier this month, Gartner claimed that spending on outsourced IT services will continue to increase during 2013.
The firm said the global market will be worth $288 billion (£191 billion) this year, up 2.8 per cent on the previous 12 months.
Gartner noted that almost all segments of IT outsourcing are forecast to grow more slowly during 2013, although the market will remain in positive territory.
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Posted by Alex Boardman