February 4, 2008

Top Ten Worldwide and U.S. Systems Integration Vendors Benefit From Strong Pipelines and Ample Number of Deals, IDC Reveals

Pipelines are strong, new deals are plentiful, and for the first time in years, vendors report a slight increase in hourly billing rates, indicating a healthy market for systems integrators (SIs). A new study from IDC also finds that customers continue to turn to SIs for integration projects that tie together disparate applications and processes to increase business value.

"Systems integrators continue to refine their global sourcing strategies, leverage repeatable solutions, develop industry-specific offerings, and forge closer relationships with the leading enterprise application software vendors in order to create competitive advantage and differentiation in a consolidating and maturing market," said Cushing Anderson, vice president for Consulting, Systems Integration, HR and Learning at IDC.

Key highlights from the IDC report include the following:

Accenture and IBM Global Services are the worldwide leaders in SI services.

The U.S. market in 2006 was dominated by companies with a strong presence in the federal government, namely Lockheed Martin, CSC, and SAIC, while in the global market the Japanese Sis, such as Fujitsu, Hitachi, and NEC Corporation, are major players.

Although they have a strong focus on growing their ecosystems through their SI partners, Oracle and SAP find themselves on the U.S. top 10 list. Despite their presence on this list, and SAP's place on the worldwide list, IDC expects them to continue to balance the growth of their services capabilities with that of their SI partners.

The worldwide SI services market is more fragmented than the U.S. market because of the presence of localized players in the global market.

The first several quarters of 2008 will be crucial for SIs to see what ripple effect the current economic uncertainty may have on SI services spending and making it more challenging for vendors to grow aggressively.

The IDC study, Worldwide and U.S. Systems Integration Services 2006 Vendor Shares: Top 10 Vendors for 2006 (IDC #210208), reviews the leading systems integrators in the worldwide and U.S. markets. It provides a top 10 listing of companies in each of these markets and briefly discusses their positioning and competitive outlook. The document also makes recommendations for companies competing in these markets. In addition, the document identifies the market share leaders in the worldwide and U.S. systems integration services market, explains why particular firms' SI services revenue is growing or declining.

About IDC

IDC is the premier global provider of market intelligence, advisory services, and events for the information technology, telecommunications, and consumer technology markets. IDC helps IT professionals, business executives, and the investment community make fact-based decisions on technology purchases and business strategy. More than 900 IDC analysts provide global, regional, and local expertise on technology and industry opportunities and trends in over 90 countries worldwide. For more than 43 years, IDC has provided strategic insights to help our clients achieve their key business objectives. IDC is a subsidiary of IDG, the world's leading technology media, research, and events company. You can learn more about IDC by visiting www.idc.com.

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