IT is leading a worldwide industry trend towards outsourcing, showing nothing short of phenomenal growth. Analysts with IDC say the market for IT outsourcing in Western Europe passed the $20 billion mark in 1996, and by 2000, they forecast it will exceed $30 billion.
IDC reckons that those vendors able to ride the outsourcing wave will tighten their grip on the marketplace, emphasising their dominance through unparalleled growth. EDS, the longterm leader, is facing several challenges in Europe, and other providers, notably CSC, showed higher revenue growth during 1996
All the outsourcing leaders provide an array of new products and services, says IDC, noting significant overall changes, particularly in the variety of relationships between providers and consumers. IDC also remarks on a noticeable move away from fixed price contracts, saying that customers are prepared to flex their muscles, demanding flexibility in payment and contractual terms.
Mirko Lukacs, research analyst and co-author of, ?Riding the Wave: An analysis of Outsourcing Market Leaders in Wester Europe?, believes that the European marketplace has matured rapidly. He said: ?Customers have become far more sophisticated in the scope and complexity of their requirements. Companies increasingly consider outsourcing not just as a means to cut costs - in fact, that may not be the aim of the exercise at all - but as a means to raise the level of IT service delivery... to concentrate on core business activities.?
The new study examines the IT outsourcing capabilities of five leading services providers in Western Europe - namely, EDS, IBM Global Services, CSC, Cap Gemini and Sema Group. The body of the report documents the suppliers? recent milestones and it explores company background and organisational structure; outsourcing product and service offerings; individual business strategies, and resources and sales strategies. Future expectations and revenue performances are included along with local country perfromance breakdowns.
The final chapters address Europe-specific outsourcing trends and business strategies and offers a comparative overview of the profiled suppliers. IDC says the study provides an overview of key business indicators and a tabular comparison of the respective strengths, weaknesses and future directions of the leading outsourcing companies. (The report is available from IDC at $3,500 plus tax.)
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