IBM Dominates IT Services Market.
These are the main findings of ComputerWire's IT Services Contracts Database, which has now tracked more than 3,000 outsourcing, IT management, systems integration, and consulting deals since 1998, worth a combined $299bn - providing an interesting snapshot of IT services spending patterns over the period.
IBM Global Services underlined its position as the world's largest IT services vendor, by taking the largest share, bagging $80.4bn worth of the contracts tracked in the database, including 29 deals with a value in excess of $1bn, and 98 deals with a value in excess of $100m. It is worth noting that this gives IBM a 27% share of the total value of deals in the database, a significant share in a fragmented market.
Computer Sciences Corp took the second largest share of the contracts, with $46.5bn of deals, slightly ahead of rival outsourcer EDS Corp, which had $45.5bn of contracts, giving it a share of 15.2%. Emphasizing the gap between IBM Global Services and its nearest rivals, the value of second-placed CSC's deals is just 58% that of IBM.
The surprise entry at number four in the rankings is privately-held Science Applications International Corp (SAIC), which had $27.8bn worth of deals in the last five years. IT and business process outsourcer ACS Inc takes fifth place with $7.6bn of deals, ahead of consulting giant Accenture with $6.1bn of contracts, and Canadian player CGI Group with $5.9bn.
North America accounted for the largest share of the contracts by number, rather than value, with 44%, ahead of the EMEA region with 42%. Asia Pacific accounted for 8% of the 3,000 contracts, with Latin America representing as 1% share. Some 5% of the deals were global, or multi-regional, which highlights that although services providers often talk up the importance of having an international presence, most IT services contracts are national.
The central and federal government sector has been the biggest investor in IT services projects, accounting for 14% of the 3,000 deals. In second place was the manufacturing sector with 11%, followed by banking with 10%, which has been helped by a recent surge in the number of outsourcing deals in the sector. The defense and local government sectors each had a share of 9%.
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|Title Annotation:||Science Applications International Corp. 4th|
|Article Type:||Industry Overview|
|Date:||Aug 6, 2003|
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