IBM’s Global Services Unit Dominates Network Consulting and Integration Services Market, According to IDC

FRAMINGHAM, MASS., APRIL 11, 2000 – According to a recent report from IDC, IBM Global Services has a commanding position in the worldwide network consulting and integration services market. The vendor captured 16% of the market's $19.3 billion revenues in 1999. IBM's share is more than twice that of EDS, its closest competitor, which has a 7% market share. The only other vendor with more than 5% of the worldwide market was Getronics.

In looking at the competitive landscape in the U.S. market, IDC sees even greater fragmentation. Underscoring this theme, the top 10 vendors accounted for only 48% of the U.S. market, and only IBM with 12% and EDS with 8% had shares exceeding 5%. The remaining players in this segment of the market are emerging regional firms looking to compete on selected engagements and partner with larger companies in a sub-contractor role.

"The attractiveness of the network consulting and integration services market, particularly within the United States, is stimulating many firms to develop more advanced offerings to remain competitive here," said Richard Dean, program manager for IDC's Network Support and Integration Services research.

"Established services vendors, emerging consulting firms, and well-financed start-ups are all taking aim at the Internet commerce wave in an effort to generate double-digit or triple-digit growth for their organizations."

IDC expects the worldwide market opportunity to remain attractive through the next several years, generating a compound annual growth rate between 1999–2004 of nearly 16%. Along with the market's increasing attractiveness, however, will come increasing demands and expectations from end users, including emerging service providers, such as ISPs, ASPs, and cable providers. "Vendors will be asked to transform their clients' networks from vehicles for data communications to vehicles that can cultivate strong brand perception, operate secure ecommerce environments, and ultimately help achieve corporate objectives," Dean said.

IDC believes only a handful of today's leading vendors are prepared to meet clients' future expectations. "A network services vendor that wishes to remain competitive in the consulting and integration services marketplace must move its value proposition forward and design and implement solutions that map precisely to its clients' business objectives," Dean said. "Total time-to-solution is the new benchmark by which services vendors are now being measured. A clear scope of offerings, a flexible pricing methodology, and a wider geographic reach are the critical success factors vendors must refine in this competitive market."

IDC's new report Network Consulting and Integration Services: The Top 10 Market Share Leaders and Winning Attributes (IDC #B21622) reveals who the top vendors were in the U.S. and worldwide markets during 1999 and shows their 1998 and 1999 revenues and market share. The report discusses emerging U.S. network consulting firms and shows their 1999 revenues. Lastly, the report analyzes characteristics of the leaders in this market. To order a copy, please contact Cheryl Toffel at 1-800-343-4952, ext. 4389 or at ctoffel@idc.com.

About IDC

IDC delivers dependable, relevant, and high-impact data and insight on information technology to help organizations make sound business and technology decisions. IDC forecasts worldwide IT markets and technology trends and analyzes IT products and vendors, using a combination of rigorous primary research and in-depth competitive analysis. IDC is committed to providing global research with local content through more than 500 analysts in 43 countries worldwide. IDC's customers comprise the world's leading IT suppliers, IT organizations, and the financial community. Additional information can be found at http://www.idc.com.

IDC is a division of International Data Group, the world's leading IT media, research, and exposition company.

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