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IDC: HP now second on top 10 outsourcers list, IBM leading

Acquisition of EDS helped vendor leap 6 places on the lucrative list

The acquisition of EDS has propelled HP to second place on IDC’s top 10 outsourcers list.

Previously eighth in 2007, HP now sits behind IBM Global Services on the list for 2008, and ahead of CSC, Telstra and Fujitsu.

The acquisition and move up the ladder left open a place in the top 10. UXC now occupies the place following its acquisition of Getronics in early 2008.

IDC associate market analyst for the Australia and New Zealand IT services market, Adam Lee, said the market, now worth nearly $6.5 billion, was driven upwards by organisations seeking cost efficiencies in the financial crisis.

“Some organisations resorted to outsourcing following reviews to rationale CapEx spending,” Lee said in an emailed response.

“The use of blended onshore/ nearshore / offshore delivery models also enabled outsourcing services to be fulfilled more cost-effectively.”

Sixth place on the list was occupied by Accenture, followed by Optus, Datacom, UXC and CITEC.

The main movement on the list was the result of acquisitions, which gave the companies additional business areas to branch into, Lee said.

“HP expanded its services portfolio and made inroads into the public and financial sector by leveraging on EDS, while UXC diversified into desktop management with Getronics.”

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