Worldwide Systems Integration Market to Grow 11.3 Percent by 2000; U.S. Continues to Account for Largest Share of Worldwide Market; New IDC Report Provides Market-Trend Information and Five-Year Forecasts of the Worldwide Systems Integration Market

Business Wire, March 26, 1996

FRAMINGHAM, Mass.--(BUSINESS WIRE)--March 26, 1996--The worldwide systems integration market grew by 7.7 percent in 1995 to reach a total of $33.7 billion according to a new report from International Data Corporation (IDC). This research reveals that the worldwide systems integration market will grow 11.3 percent through the year 2000. The U.S. continues to account for the largest share of the worldwide market, making up 46.7 percent of the world market. This percentage will increase to 49.3 percent by the year 2000. IDC projects Latin America and the Far East will be the fastest growing regions with a compound annual growth rate (CAGR) of 29.7 percent and 35.7 percent respectively, from 1995 to 2000. Japan will experience the slowest growth rates with market share falling accordingly.

This research indicates that manufacturing, banking, and government are the three major spenders in the worldwide systems integration market. On the supply-side, U.S. service providers clinched eight of the top ten rankings of worldwide systems integration services firms.

An examination of the U.S. systems integration market provided in this report reveals a 11.9 percent growth rate in 1995. IDC projects that the U.S. systems integration market will experience a compound annual growth rate (CAGR) of 12.5 percent from 1995 to 2000.

"The U.S. systems integration market is driven by the increasing use of IT as a strategic weapon, especially as an adjunct to business process reengineering," said Susan Siew-Joo Tan, a senior analyst in IDC's Consulting and Management Services research program. "Proliferation and increasing complexity of new technologies, coupled with their compressed life cycles, make it difficult for internal IS departments to keep up. Use of external service providers is also driven by the continuing attraction of a distributed environment."

This report, 1996 Worldwide and U.S. Systems Integration Markets and Trends (IDC #11159), provides an overview of the worldwide systems integration market. The report examines spending by region and by industry and forecasts the market to the end of the century. The top 10 worldwide providers of systems integration are ranked and key trends of each region are highlighted. The report also includes a detailed analysis of the U.S. systems integration market, forecasting it by specific systems integration activities and by industry. An indepth analysis of key trends in the U.S. is also included, together with a discussion on strategies to take advantage of these trends.

To order a copy of this report, please contact Cheryl Toffel at (508) 935-4389. For additional information about IDC's Consulting and Management Services research program, please contact Elizabeth Freedman at (508) 935-4764.

About IDC

International Data Corporation is the world's leading provider of information technology data, analysis, and consulting. With research centers in 40 countries and more than 300 research analysts worldwide, IDC is uniquely positioned to provide a global perspective on IT market and technology trends.

IDC's subsidiary, IDC/LINK, specializes in the convergence of the information, telecommunications, personal computing, and electronic entertainment industries.

Based in Framingham, Mass., IDC is a subsidiary of International Data Group (IDG), the world's largest publisher of computer-related information and the leading global provider of information services on information technology. -0-

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CONTACT: Elizabeth Freedman, Group Marketing Manager

Phone: (508) 935-4764 Fax: (508) 935-4168

Internet: bfreedman@idcresearch.com

or

Susan Siew-Joo Tan, Sr. Analyst,

Consulting and Management Services

Phone: (508) 935-44551 Fax: (508) 935-4168

Internet: stan@idcresearch.com