The U.S. Web Services-Based Professional Services Market to Experience Spectacular Growth and Pass the $7.1 Billion Mark by 2006, IDC Reveals

FRAMINGHAM, MA – MAY 28, 2002 – IDC predicts the professional services around Web services-related projects to generate $7.1 billion in the United States by 2006, representing a spectacular compound annual growth rate (CAGR) of 116%. IDC defines professional services related to Web services as consulting, application development, and system integration activities that are performed by external services organizations based on the Web Services ArchitectureSM (WSA) concept.


"Given the complexity of Web services, consultants and system integrators will be instrumental in forwarding the adoption of Web services among enterprises," said Sophie Janne Mayo, director, Wireless and eCommerce Implementation Services research. "The professional services firms that are winning early Web services-related projects are gaining the necessary experience around the Web services standards to position themselves well for the inflection point of adoption that will come in 2005."

While not without challenges, the Web services-based professional services market is driven by clients’ need to reduce transaction costs, to go one step further in the integration of business functions, and to create new business models. Other drivers include the ability of professional services firms to leverage expertise built during enterprise-wide application implementations, and Web technology advancement.

IDC expects a phased adoption for Web services, very much like the Internet was phased in from the intranet (facilitating internal communication) to the extranet (facilitating communication with partners) to the Internet (facilitating communication with any one).

In this new study, U.S. Web Services-Based Professional Services Forecast and Analysis, (IDC # 27093), IDC defines the components of the Web services market, highlights the current U.S. market dynamics, and predicts the professional services opportunity around Web services-related projects. IDC further estimates the U.S. market opportunity by engagement type including business consulting, IT consulting, system integration and custom application development. The study identifies challenges ahead, and finally makes recommendations for professional services firms.

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For more information about IDC’s Wireless and eCommerce Implementation Services research, please contact Jill Toole at 508-988-6915 or by email 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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