IT Off-shoring / Outsourcing Services Multiply

A new study reflects a growing number of firms relieving global businesses of their information technology chores. Conducted by IDC, a market research firm, the report confirms a new crop of competitors have thrown down the gauntlet, challenging computer service Goliaths like IBM and Electronic Data Systems (EDS) by offering low cost, specialised expertise and advanced technology. The new upcoming entrants to the off-shoring / outsourcing market include Dell, desktop management specialist, and Lucent Technologies that focuses on network maintenance. The services offered by these equipment makers might be limited, but according to IDC, each has inked contracts relevant to their specialised expertise and low prices. At the same time, the likes of Indian computer services firms such as Tata Consultancy Services, Infosys Technologies and Wipro Technologies have elbowed their way into the off-shoring / outsourcing market with high quality low cost services. Meanwhile, Salesforce.com, a company that offers off-site, subscription style software is giving a new twist to outsourcing by turning to Internet. A hosted service, Salesforce.com manages and maintains customer systems remotely. And, if IDC is to be believed, it won't be long before eBay, Google, Yahoo, AOL, Travelocity and Amazon.com move into the 'on demand' business services, as well. Despite new competition, the top three outsourcing firms i.e. EDS, IBM and Computer Sciences Corp. (CSC) have retained their positions, as competitors unsuccessful in their attempts have been unable to dislodge them. Based on revenue turn-over, IBM occupied top spot at 15.5% of the global market last year, EDS took second place with 11.7% and CDC's share in the third position was 5.5%. Among the ten biggest firms in the off-shoring / outsourcing market, services revenue of Hewlett-Packard grew the fastest at 22% according to IDC calculations, while Capgemini, IBM and Northrup Grumman recorded growth in double digits. Basing its figures on broad outsourcing contracts for data centre management, desktop care, help desk support, network operations, applications maintenance and disaster recovery services, the IDC study announced its 2004 winners when the global market for such services hit $84.6-billion. Further, the off-shoring / outsourcing market is expected to grow 6% annually through the decade, reaching $112.5-billion in 2009, while the $33.8-billion US market will grow at 4.2%, according to the research firm's predictions. Increasing competition combined with moderate growth rate has led David Tapper, IDC Analyst to foretell more company mergers as: "It's a stable set of players, but there is going to have to be consolidation." To know more about this visit:www.offshoreoutsou rcingworld.com