| Data Center Outsourcing Market 2009-2013 | | | | to outsource all, or part of their Data Center activities |
| A Data Center is a facility used to house computer | | | | to vendors. Reduction in the operational cost, availing |
| systems and associated components (such as | | | | Cloud computing service, and access to latest |
| network equipment and storage systems). Also called | | | | technology outside expertise are some of the major |
| a server farm, it includes supporting equipment, such as | | | | drivers for the growth of the Data Center Outsourcing |
| backup power supplies, data communication | | | | market. |
| connections, environmental controls (e.g., air conditioning, | | | | Unlike in the past, organizations are now engaging |
| fire suppression), rack infrastructure for collocation, and | | | | multiple vendors for their Data Center Outsourcing |
| security devices. Data Center Outsourcing refers to | | | | related activities. This provides more bargaining power |
| the outsourcing of Data Center services to enable an | | | | to the organizations, and reduces their dependability on |
| organization reduce the amount of internal resources | | | | a single vendor. Further, in certain geographic regions, |
| required to manage Data Center operation. ( ) | | | | most of the Data Center Outsourcing related |
| The demand for Data Centers has grown | | | | contracts are being signed with domestic vendors. For |
| exponentially in the recent years due to the increase in | | | | example, in North America, most of the Data Center |
| demand of data to be stored by the organizations. | | | | Outsourcing related activities are being performed by |
| However, building and managing a new Data Center is | | | | the American companies. Though many of these |
| a highly complex task, and requires huge capital | | | | activities are being performed at offshore locations like |
| expenditure. Further, technological innovation leads to | | | | India, organizations are preferring to deal with domestic |
| fast obsolescence of many hardware and software | | | | outsourcing partners. |
| products. These factors are compelling organizations | | | | |