IT services rocketing towards half a trillion

IT services rocketing towards half a trillion

It is the big names of IT services that are going to stay at the head of the pack in a market set to be worth $472 billion by 2003, research company IDC claimed last week in a global report generated from the US.

IDC is basing its market value predictions on a 10 per cent compound annual growth. Furthermore, it claims real business benefits and cost efficiencies are being obtained by enterprise IT departments which are outsourcing increasingly critical infrastructure and applications.

Of the established players, IDC is declaring IBM Global Services to be the number one player in the market at the moment. Additionally, even though the competition is fierce, it is tipping IBM GS to retain that spot as global IT services revenues approach half a trillion dollars.

Other service organisations to receive top five rankings behind IBM GS include Electronic Data Services (EDS), Fujitsu Services, Andersen Consulting, and Computer Sciences Corporation (CSC). Globally, IDC claims these top spots are wide open for positional jostling with the next five companies -- Hewlett-Packard, Compaq Services, Oracle, Unisys and PricewaterhouseCoopers -- also on the move.

"The scope of services provided by IT services companies has been evolving from services based around products to system-related services and business process services," according to Sophie Mayo, manager for IDC's Worldwide Services research, and author of the report Who Will Lead the Global IT Services Industry in 2000? A Competitive Analysis.

Mayo also said that "no services provider should be complacent" as the threat of eroding market share won't come just from traditional IT players.

"As a result of this change, the big names in the IT industry are no longer seen as the experts," she said. "Similar to the revolutionary era of the PC, the smaller, fast-growing entrepreneurial companies with specific expertise are meeting the demand for a new kind of packaged offering."

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