IDC reveals dominant outsourcing revenues

IDC reveals dominant outsourcing revenues

IDC has released revenue figures for Australia's top three outsourcing players: IBM GSA, EDS and CSC.

IBM GSA heads the list with an estimated outsourcing revenue for 1999 of $910 million; EDS $654 million; and CSC $265 million.

IDC reports the top three IT services providers have more than 65 per cent of the overall outsourcing market, with 79 per cent of total outsourcing revenue taken by the top 10 players.

The growth of these companies reflects the industry's continued push to developed value-added services, according to IDC's senior analyst, Services, Kathy Beckman.

"It will be more economical for companies [in the future] to call on external IT services providers instead of fighting to keep their IT departments staffed and savvy about the new technologies", said Beckman.

She attributes this to migration of IT talents from non-IT companies into the IT industry and the economies of scale applied by IT services providers.

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