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IDC Finds Strong Revenues for Systems Integration Vendors in 2007: Economy Suggests Changes Afoot

October 10, 2008

IDC

Cushing Anderson, 508-988-6713

canderson@idc.com

In 2007, systems integration (SI) vendors reported a healthy market with a slight increase in hourly bill rates as customers continued to turn to SI vendors for integration projects that tie together disparate applications and processes to increase business value. This produced healthy revenues for SI vendors in 2007, according to a new IDC study.

“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 to create competitive advantage and differentiation in a consolidating and maturing market,” said Ali Zaidi, senior analyst, IT Consulting and Systems Integration at IDC.

Key highlights from this IDC report include the following:

— Accenture and IBM Global Services are the worldwide leaders for SI services. IDC considers the two vendors to be in a virtual tie for the top spot, with less than an 0.01% difference in market share.

— The U.S. market in 2007 was dominated by companies with a strong presence in the federal government market, namely Lockheed Martin, CSC, and SAIC. In the global market, the Japanese SIs, including 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, IDC expects them to continue to balance the growth of their services capabilities with that of their SI partners.

— The first several quarters of 2009 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.

“We expect this market will continue to grow and, while 2008 will likely be a strong year, we expect buyers to raise the threshold of business value,” said Cushing Anderson, program vice president, Project Based Services at IDC. “For approval, buyers will press harder on project costs and possibly delay the start of new initiatives until the economic uncertainties pass. SI projects currently underway may not be impacted unless the economic conditions deteriorates further.”

This IDC study, Worldwide and U.S. Systems Integration Services 2007 Vendor Shares: Top 10 Vendors for 2007 (IDC #214203) 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 1,000 IDC analysts provide global, regional, and local expertise on technology and industry opportunities and trends in over 110 countries. For more than 44 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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