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Competitive landscape continues to evolve among top ten players, IDC research reveals.
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Consulting-Times E-zine
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Systems integration market has strongest year since dot-com boom
During 2005, the worldwide systems integration (SI) services market experienced its strongest year since the heyday of the dot-com boom in the late 1990s.
According to a new study published by IDC, after years of sluggish returns and historic lows, the worldwide market experienced moderate growth of about 4% in 2005, indicating healthy customer demand.
IDC believes that the improved economic conditions, pent-up demand, and a desire to align business processes with IT systems drove spending. IDC's research also indicates that high-growth areas include investments in SOA, infrastructure improvements, and application services.
“SIs that have invested in emerging areas, stayed close to customers, and focused on efficient execution are well positioned to capitalize on the market as it improves,” said Stephanie Torto, program manager for IDC's Systems Integration Business Strategies research. “Companies that will succeed in the SI market going forward will be those that embrace the evolution of the software environment, collaborate closely with partners and customers, possess a strong understanding of industry-specific business processes, and have a mature and seamless global delivery capability.”
IDC believes that the competitive landscape for the SI services market will continue to evolve as vendors balance their SI investments and priorities with their overall portfolio of offerings and strategic direction of the company.
Key findings
Accenture, fuelled by its momentum in 2004, was well positioned to take advantage of a rebounding SI market and customers' pent-up demand for SI services and was the top worldwide SI in 2005.
The US market was dominated by companies with a strong presence in the federal government, namely Lockheed Martin, CSC, and SAIC.
The diversity of players found in the worldwide SI market reflects the reality of the IT services market, in which vendors come from a variety of backgrounds to provide holistic services to customers.
The worldwide SI services market is more fragmented than the US market because of the presence of localized players in the global market.
IDC believes that consolidation will mirror the type of activity characteristic of the market over the past few years, that is, targeted, niche acquisitions for specific industry or technical skills.
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