1644 — Number of Large IT Outsourcing Deals Fell in Sweden in 2004, Says IDC

Jan 18, 2005 | Conteúdos Em Ingles

According to a new IDC study, there was a fall in the number of large IT outsourcing deals in Sweden in 2004. Market growth was 12% in 2003 and around 10.5% in 2004, but this is forecast to drop to 7.4% in 2005, with a particular slowdown in IS outsourcing growth. Average annual growth is expected to be 8% between 2003 and 2008.

The study, “Sweden IT Outsourcing and Utility Service Market 2003 Vendor Shares and 2003–2008 Forecast” revelas that IBM and HP recorded strong growth in the past year, as the market continues to consolidate. The three largest vendors in 2003 — IBM, WM-data, and TietoEnator — accounted for 31% of the market, but in 2004 the three largest vendors — IBM, HP, and WM-data — are expected to increase their market share to 41%.

The fall in the number of large deals, due to a slowdown after a period of high activity, has been offset by an increase in the number of deals in the SME sector, with more SMEs recognizing the benefits of outsourcing, such as improved efficiency.

2002 and 2003 were the years of the large deal (those worth more than about SEK 500 million). Of the top 100 outsourcing deals in 2003, for example, 20 were in the Nordic region — eight in Denmark, eight in Sweden, three in Norway, and one in Finland. In value terms, Denmark ranked equal second with Germany, closely followed by Sweden. With the number of large IT outsourcing deals falling in Sweden in 2004, however, IDC says the market is expected to move towards smaller installations.

According to IDC Research Manager Esa Peltonen, vendors that can provide utility-like offerings, a combination of business process and IT outsourcing, and offshore capabilities are the ones that are most likely to win the largest IT outsourcing deals.

Source: IDC


Notícias – Press-Releases