The market conditions facing application management services vendors have remained challenging throughout the first half of 2004. Consequently, IDC Canada's outsourcing services research team has decided to retain the current forecast until the next major forecast revision period commences in the first quarter of 2005. "Application outsourcing services continues to represent a sound market opportunity for vendors. Success in this market in 2004 will continue to rest on providing exceptional service throughout the application services lifecycle which culminates in application outsourcing services," says Jim Westcott, outsourcing analyst.