Worldwide Services Bookings Continue Positive Trend in First Half of 2004 Achieving $65 Billion in Contract Awards, IDC Says
FRAMINGHAM, MA – October 25, 2004 – According to IDC, the bookings trend in the services industry continues to be positive, indicating an acceleration of signings in the second half of 2004 and reflecting solid market conditions for many service providers in the coming months.
The first half of this year was the best-performing, first-half period over the last four years, with an aggregate of $65.1 billion in bookings for the 11 services vendors that IDC tracks. Vendors included in this analysis are Accenture, ACS, CGI Group, Capgemini, CSC, EDS, IBM Global Services (IGS), Keane, Northrop Grumman, Perot Systems, and Siemens Business Services (SBS).
"Bookings represent an important barometer for purchasing behavior of services in the global marketplace. In particular, bookings provide valuable information about what will happen in the coming months," said Marianne Hedin, program manager for IDC's worldwide services research.
IDC reports that awards in 1H04 have increased by 8.6% compared with the same period last year. Outsourcing continues to drive the growth of bookings; however, IDC has observed that project-oriented work in consulting and systems integration is beginning to show some upward momentum in spend among the group of companies tracked.
The number of billion-dollar deals continues to decline among this group of vendors and it is not likely that 2004 contracts will equal the volume signed last year among them. The best prospect for large mega-contracts today is the government sector and services firms with longstanding relationships with clients in this sector will continue to flourish.
IDC's recently released report Worldwide Services 1Q00 – 2Q04 Vendor Analysis: Bookings Update for 2Q04 and 1H04 (IDC #31932) discusses booking trends among 11 major service providers from 2000 through the second quarter of 2004 and analyzes how contract awards have changed on both a quarterly and half-year basis. Specifically, this study compares the second quarter and the first half of 2004 with the same period in 2003. Also included is IDC's analysis of each vendor's bookings, business strengths and weaknesses to identify which type of contracts represent the best overall business opportunity.
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