Outsourcing Booms Despite Y2K, Though Europe Slumps.
Excluding Millennia (which has been valued at up to $25bn over ten years), Tech Data took a 34% share of second-quarter contract values, followed by Nortel Networks Inc (28%), EDS (25%) and Computer Sciences Corp (13%). Tech Data led the business process management segment, IBM Corp's Global Services division led in electronic markets and insurance, Nortel in network management, EDS in manufacturing, Getronics Wang in banking, Unisys Corp in the state and local government segment and the Sabre Group in transportation. 97% of the contracts were from North America, with Europe down from 11% in the first quarter to just 3%.
Input said that the upturn countered analysts who had expected a downturn in activity due to Y2K fears. It said overall spending remains robust, and companies such as EDS, CSC, IBM Global Services and others are claiming "huge pipelines of business yet to be finalized." San Diego County is expected to award its $1bn contract in September, and the State of Connecticut is restructuring its contracts into smaller units, spread across a wider range of IT vendors.
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|Date:||Aug 10, 1999|
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