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Top companies take big chunk of worldwide service earnings

Top companies take big chunk of worldwide service earnings

The top 10 services companies last year accounted for nearly a quarter of all services revenue worldwide, a new IDC study revealed.
According to IDC research, IBM continues to lead the pack with US$49.3 billion in services revenue in 2006 - or more than double the size of the next biggest vendor, EDS, which has US$19.9 billion in services revenue.
Occupying the third slot was Accenture with US$16.6 billion.
IDC's research indicated that outsourcing continues to grow in importance as a major segment for many of the top 10 vendors.
"It is the dominant revenue-generating service offering, not only for IBM but also for EDS, Fujitsu, CSC, and Northrop Grumman," the firm said.
"Project-oriented services still represent the leading services business for four of the top 10 companies: Accenture, Lockheed Martin, Capgemini, and Hitachi."
Lockheed Martin and Capgemini were also the fastest growing in the project-oriented services market, it added.
In the support and training services segment, the leading vendors were IBM and HP. Both players experienced relatively flat growth rates in this segment for 2006, -0.6 percent and -0.2 percent respectively, which was better than the collective -1.2 percent growth rate in this segment for the top 10 providers combined, said IDC.
"Providers are taking numerous strategic steps to improve revenue growth and profitability because service revenue growth rates for the top 35 providers have been declining for the past two calendar years," said Gard Little, a program manager for IDC's Worldwide Services and Emerging Services Opportunities research programs.
"We are predicting that this decline in the revenue growth rate will start to level off, with worldwide IT services spending producing a compound annual growth rate of about six percent over the next five years."
The most important strategic actions of service providers last year included emphasizing business process outsourcing and specific vertical industry experience as the path toward deeper and more profitable client relationships. They also made significant investments in innovation and in research and development to fuel future growth and global sourcing options.
IDC predicted that the most significant investments will be in the development of both technology- and people-based global delivery networks.


Updated : 2021-07-27 07:44 GMT+08:00