The Application Management Services Market Heads for Growth in 2005, IDC Finds.FRAMINGHAM, Mass. -- According to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. a recent IDC study, approximately $17.9 billion was spent worldwide on application management (AM) services in 2004. Due to a strong surge in demand for application management services, the worldwide market is expected to grow at an overall compound annual growth rate (CAGR CAGR See: Compound Annual Growth Rate ) of 9.2% and reach $27.2 billion by 2009. This study finds that offshore labor sourcing and high-end transformational services will be critical offerings for successful application management services vendors. "The worldwide application management services market is healthy and growing rapidly," said Barry Mason, senior analyst, Application Outsourcing and Offshore services at IDC. "Customers are seeking vendors with global sourcing capabilities and diverse offerings that span everything from basic application maintenance services to transformational services such as legacy modernization modernization Transformation of a society from a rural and agrarian condition to a secular, urban, and industrial one. It is closely linked with industrialization. As societies modernize, the individual becomes increasingly important, gradually replacing the family, , service oriented o·ri·ent n. 1. Orient The countries of Asia, especially of eastern Asia. 2. a. The luster characteristic of a pearl of high quality. b. A pearl having exceptional luster. 3. architectures (SOA (1) (Start Of Authority) The first record in a DNS zone file. See DNS records. (2) (Service Oriented Architecture) The modularization of business functions for greater flexibility and reusability. ), and portfolio rationalization rationalization, in psychology: see defense mechanism. . This critical combination of both low-cost operational capabilities and high-value services offerings are crucial elements for vendors to help their customers create truly dynamic IT organizations, and will drive further growth in the application management services market." The U.S. application management services market continues to grow and leads in regional spending. Approximately $8.5 billion was spent by U.S. customers on discrete application management services in 2004, and this amount is expected to increase to $11.8 billion by 2009 at a 6.9% CAGR. The Europe, Middle East, and Africa region (EMEA (Europe, Middle East, Africa) Refers to that region of the world. For example, one might see products packaged differently for the UK, EMEA and Asia Pacific markets. ) as well as Asia/Pacific are also expected to grow during this forecast period, however; the growth rate of the Asia/Pacific region will continue to increase throughout the forecast period, while both the Americas and EMEA will experience declining growth rates Growth Rates The compounded annualized rate of growth of a company's revenues, earnings, dividends, or other figures. Notes: Remember, historically high growth rates don't always mean a high rate of growth looking into the future. beyond 2007 as those markets mature. This IDC study, Worldwide and U.S. Application Management Services 2005-2009 Forecast (IDC #33221), presents the annual update to the five-year forecast for the worldwide and U.S. market for application management services. The document identifies and quantifies the impact of recent trends and events influencing the application management services opportunity through year-end 2004 and their impact on the five-year forecast. Future outlooks and essential guidance are offered for application management services vendors. 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 IDG International Data Group IDG Integrated Drive Generator IDG Installation Design Guide IDG Internet Discussion Group IDG Inset Dielectric Guide IDG International Dangerous Goods (mail, shipping) , the world's leading technology media, research, and events company. Additional information can be found at www.idc.com All product and company names may be trademarks or registered trademarks of their respective holders. |
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