Traditional IT services firms will begin facing competition from unexpected sources as delivery companies such as UPS and Ryder International, target their services at ebusinesses, according to analysts at IDC.
The research company estimates that the global IT services industry market will increase at an annual compound growth rate of 10 per cent to reach a whopping $472bn by 2003.
But although traditional companies such as IBM Global Services still command significant market share, internet companies are increasingly becoming attracted to delivery firms because of their logistics infrastructures, claimed Sophie Mayo, manager of IDC's worldwide services research group.
She said: "Logistics companies are positioning themselves as providers of services in the internet economy because they play a key role after customers press the buy button."
Ebusinesses can take advantage of the delivery infrastructures of logistics companies that are beginning to manage the order processing and warehouse management requirements of ebusinesses, Mayo explained.
"Companies such as UPS and Ryder are turning themselves into e-logistics companies. They have the infrastructure to manage all the processes from warehouse management to shipment and order processing, all the different supply chain stages. IT services companies have IT knowledge but not industry knowledge or the logistics infrastructure," she continued.
Despite the threat from such delivery services companies, IBM Global Services, EDS, Fujitsu and Computer Sciences (CSC), continue to lead the IT services market.
"It will probably take a half decade before any company seriously threatens IBM Global Services' supremacy, and even then, it will be unlikely. However, no services provider should be complacent," Mayo concluded.
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