Denmark IT-Services 2005-2009 Forecast and 2004 Vendor Shares

Danish IT services market reached 25B DKK in 2004, and outsourcing became the largest segment in the market. Outsourcing grew an impressive 30% and granted the growth of in 10% of the total market, whereas the other segment remained almost flat. The mega-deals of 2003 had the full bearing in 2004 but also a high number of smaller deals contributed to the picture.

"While 2004 was slow with large deals, several midsize deals have been signed in 2005, and we are convinced growth will continue although at a slower pace " Research Manager Mette Ahorlu, IDC says. "The challenge for the vendors will be to remain competitive, create profit and still differentiate in the market. Many vendors moved the focus to outsourcing because of the positive outlook, but margins are squeezed and offering very much alike. We believe consolidation reorganization will continue to be on the agenda of midsize and smaller vendors. But not less important will be to adapt go-to-market strategies and product mix to differentiate in the market. Vendors are not yet so much aware of this, but we believe it will be top of the agenda within very short time."