IDC Research Finds Worldwide Solution Integration Services Will Be a Hundred-Billion-Dollar Market by 2005
FRAMINGHAM, MA – SEPTEMBER 4, 2001 – The market for solution integration services is growing rapidly. According to IDC, worldwide revenues will increase at a compound annual growth rate (CAGR) of 25%, from $38 billion in 2000 to $116.5 billion in 2005.
"Growth in the solution integration services market is being fueled by the need for seamless business processes across a company’s entire value chain of customers, partners, suppliers, and employees," said Stephanie Torto, senior analyst with IDC’s Solution Integration Strategies research program. "In today’s competitive environment, it’s not sufficient to have isolated solutions that are unable to communicate with one another. Companies need their IT systems and applications to work as one cohesive unit. As a result, the services opportunity around implementing, integrating, customizing, and optimizing business solutions has never been larger."
According to IDC, the segment of the systems integration services market that represents the largest opportunity is supply chain management (SCM) services. IDC forecasts revenue in this segment will increase from $12.7 billion in 2000 to $41.4 billion by 2005. "Achieving operational efficiency is a major growth driver in the SCM services segment," Torto said.
The fastest-growing segments will be knowledge management services and customer relationship management services, with 2000-2005 CAGRs of 40% and 35%, respectively. Growth in the customer relationship management services segment represents an increase of over $16 billion. By comparison, knowledge management services revenues will increase from $1 billion to under $3 billion.
IDC believes the borders separating the market’s various services segments will begin to blur in the coming years. "The most dramatic trend that will affect the solution integration services industry will be the merging of solutions services," Torto said. "This convergence is being driven by customers’ needs for solutions services across the front and back offices that don’t stop and start at artificial boundaries."
Because of this trend, IDC believes it’s important for service providers to expand their skills so that they’ll be able to offer a full range of integration solutions services.
IDC recently published Solution Integration Services Forecast and Analysis, 2000-2005 (IDC #B24803). This report forecasts revenue in the worldwide systems integration services market, segmented by six solution services areas: customer relationship management, knowledge management, Internet services, emarketplaces, SCM, and enterprise resource management. Trends affecting each segment are analyzed. Additionally, the report includes snapshots of some of the leading solution integration service providers.
To purchase the report, contact Jim Nagle at 1-800-343-4952, extension 4549, or at firstname.lastname@example.org.
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 www.idc.com.
IDC is a division of IDG, the world's leading IT media, research and exposition company.
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