IBM Global Services Top IT Services Vendor

EDS and Compaq trail Big Blue

• By Stephen Swoyer
• 09/12/2002

According to the IDC report, "Network Consulting and Integration Services: Year 2001 U.S. and Worldwide Top 10 Market Share Leaders," the worldwide market for networking and integration services amounted to $19.2 billion last year.

To no one’s surprise, IBM Corp.’s Global Services (IGS) unit again came out on top. (Big Blue also topped IDC’s survey in 2000.) For 2001, IGS controlled 17.7 percent of the worldwide market for networking and integration services. Percentage-wise, this was down slightly in 2001 from IGS’ 17.9 percent mark in 2000. At the same time, IGS’ revenue grew by approximately $300 million from 2000 to 2001.

IDC’s report revealed that IGS is placed quite firmly at the top of the outsourcing heap. Its closest competitors -- Electronic Data Systems (7.9 percent of the worldwide market), Compaq Computer Corp. (7.3 percent), Alcatel (6.3 percent) and Getronics (5.6 percent) -- trail it by a wide margin.

IDC emphasizes that the current market share positions are based on a mere "snapshot" in time, and cautions that leading vendors -- i.e., IGS -- shouldn’t rest on their laurels.

Christine Tenneson, a senior analyst for IDC’s Network Support and Integration Services group, says that though many services providers experienced revenue slowdowns in 2001, demand for some services is growing.

"Despite the fact that many network consulting companies -- particularly those focused on the service provider market -- experienced a prolonged slowdown in demand, several types of specialized services should see robust growth during 2002 and 2003," Tenneson said in a prepared release. "To take advantage of the fastest-growing areas, network services firms should investigate developing or expanding their capabilities in security consulting and implementation, wireless consulting and implementation, operations assessments, network optimization services, and convergence services."

-- S.S.