IDC Ranks Top U.S. IS Outsourcers in Six Vertical Industries

FRAMINGHAM, MA – JULY 21, 2003 – The world of outsourcing is undergoing some radical changes. In addition to consolidation, the industry is focusing more on traditional business process outsourcing (BPO) capabilities and shifting from the traditional "silo" approach to a utility computing or "on demand" model. IS outsourcers are using these new service strategies as a way to better position themselves to win customers and to build market share in key vertical industries.

In 2002, there was an increased focus on key verticals not only among key outsourcers, but also by type of offering (BPO versus on demand). IDC ranks the top U.S. IS outsourcers across 6 major industry verticals according to 2002 revenues as follows:

Financial services: IBM Global Services is a clear leader

Manufacturing: EDS and IBM Global Services clearly dominate

Retail/Wholesale: IBM Global Services and EDS dominate again

Energy/Utilities: CSC leads the pack, followed by SAIC

Government/Education: CSC leads, but IBM Global Services is close behind

Healthcare: While IBM Global Services and EDS dominate, Perot Systems is the third largest

"While no major changes to the positioning of these outsourcers by vertical are expected during 2003 into 2004, the shift toward utility computing on demand could very well influence the longer-term positions of outsourcers across vertical industries," said David Tapper, program manager for IT Outsourcing and Utility Services research at IDC. "The reasoning behind this belief is that utility computing and on-demand services are ultimately a direct threat and substitute for the traditional outsourced IT model as well as business process services."

IDC's new document, Top 10 U.S. IS Outsourcers by Select Vertical Industries, (IDC #29738) evaluates the leading IS

outsourcers by six vertical industries. It provides an analysis of the competitive landscape in 2002 and discusses which services firms are leading in certain verticals and why. Additionally, it evaluates the effects of changes in the competitive landscape, makes predictions for 2003, and lastly gives recommendations to services firms that target these select vertical industries directly or through partnerships.

For more information about IDC's IT Outsourcing and Utility Services research and Services Vertical Views program, please contact Virginia Lehr at 508-935-4188 or email

About IDC

IDC is the premier global market intelligence and advisory firm in the information technology and telecommunications industries. We analyze and predict technology trends so that our clients can make strategic, fact-based decisions on IT purchases and business strategy. Over 700 IDC analysts in 50 countries provide local expertise and insights on technology markets. Business executives and IT managers have relied for 40 years on our advice to make decisions that contribute to the success of their organizations.

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