IT Marketplace
The Big Five Services Giants
While IBM Global Services continues to reign supreme over the IT global services marketplace, EDS Corp. regained its leadership position within the US market for IT services when it captured 11 percent of the 2001 market for services, compared to IGS' 5 percent, according to data compiled by Annex Research of Phoenix, Arizona.
The top five global IT services leaders had a combined revenue growth of 17 percent for the 1991–2001 decade, making it one of the fastest-growing areas in the IT industry, according to Annex. But a slowdown can already be made visible by comparing this year's 10-year moving average of 17 percent with last year's 18 percent, Annex explains.
IT Market Up close
The Russians are Coming
The Russian IT sector was estimated to have grown by 18 percent last year to $3 billion, according to Gartner Research. The overall market is expected to expand by 20 percent in 2003, while the market for software in Russia was estimated to be about $500 million to $800 million in 2001 and growing at about 25 percent a year.
Offshore IT Services
Russia's IT Consulting Offerings
Most Russian software consultancies are very small — one in three firms have 10 or fewer developers, according to Gartner Research. Of the rest, one in every four consultancies that develop software in Russia acts as an overseas development center for a international vendor. According to Gartner, the remaining 40 percent are of variable size, but most have no more than 50 developers.
Geographic Focus
IBM Down and Under in Asia
Among the giant professional services firms making inroads in Asia, none can match the considerable market share advantage IBM Global Services now enjoys. It's an advantage under which the services behemoth now boasts a 56.7 percent share of the market, compared to EDS with 20 percent, and Accenture with 9.8 percent, according to Annex. Still, IGS saw its market share drop in Asia in 2001 by 2.6 percent, while EDS and Accenture saw their market share climb by 1.7 percent and .9 percent respectively, according to Annex, which attributes IBM's slippage in the US market and abroad to shrinking IT budgets within large corporate accounts. "The big fat cash cow called Big Business has all but dried up," says Bob Djurdjevic, Annex president. By having not expanded its reach deep into medium-sized corporate accounts, IGS is now paying a stiff price, according to Djurdjevic's recent findings.
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