IDC Reveals Market Insights Gained from the Top 20 Services Players

FRAMINGHAM, MA – August 10, 2004 — The market for information technology (IT) and business services continues to present both great opportunities and never-ending challenges, according to a new report from IDC that analyzes and compares the top 20 services firms. At the same time, the competitive market is heating up as services firms face slower growth prospects, pressure to expand geographically, greater productivity expectations, the need for deeper business and industry expertise, the productization of intellectual capital, and internal transformations to meet market needs.

"Competition in the services marketplace has never been so intense. With new entrants from offshore locations, new delivery models being developed, the convergence of software, hardware, and services, and ever more demanding customers, services firms are faced with a multitude of challenges," said Sophie Mayo, director, Worldwide Services research at IDC. "Those firms that are able to anticipate the changes and execute on their vision, will stay on the top of the market."

Some of IDC's key observations detailed in this supply-side study include:

• The services market is highly fragmented with the top 20 providers representing just over a third of the market opportunity in 2003. IDC expects that the top companies will become increasingly dominant as acquisitions continue to play an important part in their growth strategies. Meanwhile, SMBs will comprise a greater share of the purchasing market with demand for low cost and rapid implementations.

• New entrants will continue to put competitive pressure on the major incumbents. Some of the most notable emerging players today are: CGI Group, Dell Services, Infosys, LogicaCMG, Tata Consulting Services (TCS), and Wipro Technologies.

• The firms that can demonstrate their ability to integrate technology, data, and business processes with an explicit measurement of cost savings and value creation will be the ones that win the battle for the growing BPO and transformational outsourcing opportunity.

This study, Worldwide Services 2004 Vendor Analysis: Winning in the Global Services Marketplace, Lessons Learned from the Top 20 Players (IDC #31614), helps professional services players and their customers and alliance partners differentiate the capabilities and strategic directions of the top 20 global services companies that compete in the overall services industry. The study also offers a leadership grid, in which IDC positions each participant against two axes: ability to gain share and alignment with future market opportunities.

The top 20 services players profiled include Accenture, ACS, Atos Origin, BT Global Services, Capgemini, CSC, Deloitte, Deutsche Telekom (T-Systems), EDS, Fujitsu, HP Services, Hitachi, Ltd., IBM Global Services, Lockheed Martin, NEC, Northrop Grumman, NTT, Siemens Business Services, SAIC, and Unisys. In addition to these top vendors, IDC highlights some of the most important emerging companies to provide a comprehensive view of the competitive landscape.

To purchase this document, call IDC's sales hotline at 508-988-7988 or email sales@idc.com.

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.

IDC is a subsidiary of IDG, the world’s leading technology media, research, and events company. Additional information can be found at www.idc.com.

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