IDC Reveals Reduction in Outsourcing Deal Size and Rising Competition
The total contract value (TCV) of the
top 100 worldwide outsourcing deals
decreased by 3.1% from $70.1 billion in 2004 to $67.9 billion in 2005,
according to the
annual IDC study
of the top 100 worldwide outsourcing deals. The
study finds:
- reduction in the number of both megadeals valued at $1 billion and higher and deals ranging from $500 million to less than $1 billion TCV.
- dramatic increase in the number of deals with less than $250 million TCV from 8 in 2004 to 23 in 2005.
The study found that while six players captured 54% of the top 100 contract value in 2004, it took just five players to capture nearly the same amount (53.5%) in 2005, with IBM Global Services leading the way, followed by EDS, BT Group, CSC, and T-Systems.
The study, IDC’s Top 100 Worldwide Outsourcing Deals of 2005, provides detailed information on how these contracts evolved in 2005 as associated with size of deals, length of deals, industries, service markets (e.g., BPO, IT outsourcing), geographic coverage, and vendors. Additionally, this study provides detailed analysis on trends impacting the outsourcing market and contract opportunities, future outlooks, as well as essential guidance for players to compete most effectively.
