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 also finds that the number and value of business outsourcing deals declined in 2005, while the value and number of IT outsourcing deals increased. Within IT outsourcing, the share of network and desktop outsourcing deals climbed substantially from 14.6% of total IT outsourcing deal value in 2004 to 32.4% 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. 

Previous: « Retail sales slides by 0.4%; Export/Import Prices down, first in 6 months

Next : » Worldwide Wireless Semiconductor Revenue to Grow 11% in 2006, says Gartner


  ABOUT    CONTACT Metrics 2.0 RSS Feeds RSS   Metrics 2.0 Widgets for your site or blog WIDGETS   ARCHIVES


Enter Email for Daily Feed Delivery: