Revenue Ranking of Top Ten Service Providers Reveals Accenture and Capgemini Moving Upwards, IDC Finds

FRAMINGHAM, MA – May 21, 2008 – According to a recent IDC study of the top 10 worldwide service providers, Accenture and EDS tied for second place in 2007 with just $87 million in services revenue separating the two. In addition, Capgemini moved up on the top 10 list for the second year in a row and is now ranked seventh. IDC believes both Accenture and Capgemini have achieved positive results based, in part, on the strategic steps taken to improve revenue growth and profitability over the past few years.

“Accenture had a phenomenal year in 2007 with 18.9% revenue growth, which was the highest among any of the top 10 service providers. It is delivering high performance not only for its clients but also for itself,” said Gard Little, program manager, Worldwide Services. “Capgemini had an impressive year in 2007 as well, achieving 40% growth in revenue from the Americas, and a 13% revenue growth rate worldwide. Its focus on innovation, industrialization, and client intimacy is clearly working.”

IBM continues to lead the pack, with $55.1 billion in services revenue in 2007, more than double the size of Accenture or EDS. Once again, IBM leads in revenue generation for all three of the major business segments and all three of the major geographic segments tracked by IDC.

Worldwide service vendors with customers who pay for services in currencies other than the U.S. dollar may have been helped in the 2007 rankings by a weakening dollar. When a company reports its revenue in a currency other than the U.S. dollar, IDC applies an exchange rate that is the quarterly average exchange rate as provided by

Other key trends highlighted in this report include the following:

* The service revenue growth rate for the top 35 service providers increased to 12.5% between 2006 and 2007, reversing a declining trend in revenue growth rates of the previous two calendar years.

* Outsourcing continues to grow in importance as a major segment for many of the top 10 vendors. It is the dominant revenue-generating service offering, not only for IBM but also for EDS, Fujitsu, CSC, and Northrop Grumman.

* The combined market share of the top 10 vendors has not shifted much between 2006 and 2007 – there was a decrease of 0.07% year over year for the total group of these 10 vendors to 25.6% of the worldwide services industry.

This study, Worldwide Services 2007 Vendor Analysis: Revenue Performance of the Top 10 (IDC #212211) analyzes the IT and business services competitive landscape by examining and comparing revenues of the top 10 service providers worldwide. The service providers included in this study are Accenture, Capgemini, CSC, EDS, Fujitsu, Hitachi, HP, IBM, Lockheed Martin, and Northrop Grumman. This document can assist analysts, services players, their customers, and alliance partners in assessing the relative strength and competitive rankings of firms that provide a wide array of service offerings globally.

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