Outsourcing was the major contributor to the high growth rates of larger software and computing services companies last year, responsible for a 29% rise in UK revenues of the top 10 software and computer services companies to #4.1 billion.
In an industry newsletter, System House, Richard Holway said acquisitions rather than outsourcing have been the major reason for the high growth rates of larger companies in previous years.
In 1996, revenues of companies engaged in outsourcing such as EDS soared, while those with no outsourcing activities such as Microsoft and Oracle had the lower growth rates.
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