Global top 50 services vendors fail to match market growth rate: Datamonitor
By Our Corporate Bureau | 02 May 2006
Mumbai: Are the world's top 50 IT services vendors losing markets to more agile, smaller firms? Several industry analysts have been predicting this for some time now. Now comes a report by the respected London-headquartered global market analyst Datamonitor, that seems to authenticate this, so far, informal view.
According to new research by market analyst Datamonitor, the world's 50 largest IT services vendors booked combined revenue of $262 billion last year, but grew at a slower rate than the overall market.
Conducted annually, results from this year's Datamonitor's research Global IT Services Top 50 Rankings, seem to vindicate the belief of many industry analysts that some of the sector's larger players are losing out to smaller, more focused vendors.
The vendors, which ranged from IBM Global Services with sales of $47 billion to Patni Computer Systems with $450 million, increased their combined sales by 1.9 per cent over the previous year. However, this is well below the 8 per cent growth in the overall market for external IT services expenditure recorded by Datamonitor.
Datamonitor ranked the top 50 suppliers, based on their revenue figures reported in their most recent fiscal years. The numbers used are the 'as reported' figures in annual results statements, and are not adjusted for foreign exchange fluctuations, disposals or acquisitions. The list excludes companies that make the bulk of their revenues from reselling products, and captive IT operations that make the majority of their revenue from their parent organisations.
There was little change at the top of the rankings, with IBM, EDS, Fujitsu and Accenture again placed as the 'top 4', although BT Global Services overtook its German peer T-Systems to take eighth spot. However, India's five largest players all made significant moves up the league table, growing their combined sales by 35 per cent to $9.3 billion.
