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This IDC study presents the annual update to the five-year forecast for the worldwide and U.S. market for application management services. The purpose of this document is to identify and quantify the impact of recent trends and events influencing the AM services opportunity through year-end 2005 and their impact on the five-year forecast.
This document answers the following questions:
What are IDC's predictions and assumptions relating to market forces impacting the application management services market, and what impact will they have on the market forecasts? Which assumptions are of sufficient importance that a change in the assumption would result in a change in the market forecasts? What impact will developments in this market have on the players in the market? How might the development predicted in this market impact the revenue of the players? What are the not-to-be-missed opportunities?
"The worldwide application management services market is once again experiencing healthy growth, enough so that IDC has this year revised its forecasts upward. As customers seek to reduce the portion of their IT budgets dedicated to ongoing maintenance in order to reallocate funds for new initiatives that drive business value, AM services is often a logical choice. Adding in the benefits of increased quality, access to talent, and innovative modernization services is sealing the deal for many customers. Though there are several threats on the horizon that could potentially drive down AM services spending, including SOA, hosting, software as a service, and increased automation, savvy vendors will find ways to turn those threats into opportunities," said Barry Mason Rubenstein, senior analyst for Application Outsourcing and Offshore Services at IDC.
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