IDC Forecasts $6 Billion in Worldwide Professional Services and AEC Application Revenues by 2004

FRAMINGHAM, MA – OCTOBER 9, 2000 – From less than $3 billion in 1999, revenues in the worldwide professional-services and architectural/engineering/construction (AEC)-specific applications market will grow to more than $6 billion by 2004. According to IDC, a big factor in the market's growth will be the increasing similarities among services firms.

"Once terminology and domain issues are put aside, application suppliers are finding professional-service and AEC firms have more in common in terms of business process automation needs than previously thought," said Dennis Byron, program director for IDC's Enterprise Applications research. "This increasing homogeneity (making major enterprise-applications development efforts profitable) and the size of the service economy will be the major market drivers for the growth in the professional-services- and AEC-specific applications market."

According to IDC, AEC and professional services firms' still developing view of application service providers (ASPs) as a deployment mechanism will have a significant impact on the market. Service providers have demonstrated a propensity against outsourcing, but this tendency may not apply to ASPs. In fact, IDC is confident there will be a demand for ASP-deployed professional-services and AEC-specific applications. "Because of their efficient manner of deploying application functionality, ASPs could depress AEC- and professional-services-specific application license revenue streams," Byron warned. "But that is not to say the application-function demand isn't there."

Information like the above comes from IDC's report, Professional-Services — and AEC-Specific Applications: 2000-2004 Market Outlook and User Trends (IDC #B23001). The report provides five-year revenue forecasts, segmented by region and operating environment and also examines AEC and professional services firms' willingness to adopt ERP-like automation and other user trends. To purchase this report, contact Cheryl Toffel at 1-800-343-4952 extension 4389 or at

About IDC

IDC is the foremost global market intelligence and advisory firm helping clients gain insight into technology and ebusiness trends to develop sound business strategies. Using a combination of rigorous primary research, in-depth analysis, and client interaction, IDC forecasts worldwide markets and trends to deliver dependable service and client advice. More than 700 analysts in 43 countries provide global research with local content. IDC's customers comprise the world's leading IT suppliers, IT organizations, ebusiness companies, and the financial community. Additional information can be found at

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

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