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This IDC study answers the following questions:
What are IDC's predictions and assumptions relating to market forces affecting the Western European IS outsourcing services market, and what impact will they have on the market forecasts?
What are the key recommendations from IDC for maintaining and growing IS outsourcing revenues in the coming years?
"Growth across the forecast period 2008 to 2012 will continue to slow because of continued price deflation, fierce competition by Indian players, the emergence of low-cost disruptive forms of service delivery, and a growing saturation of the market," said Jennifer Thomson, research manager, European Software and Services. "Due to this market maturity and changing market dynamics the playing field in IS outsourcing is getting crowded. Vendors must work tactically to defend current business in a bid to maintain share of wallet with key clients, but should also work strategically on fostering change within existing contracts to enable an increase in that share of wallet. There also needs to be a balance between defending and growing business; new logo wins in the midtier space will be critical to new growth opportunities."
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