Competitive Market for Web Services-Based Professional Services Heats Up, IDC Study Shows

Business Wire, May 13, 2004

Business Editors

FRAMINGHAM, Mass.--(BUSINESS WIRE)--May 13, 2004

The market for Web services-based professional services is heating up, a new report published by IDC reveals. According to this study, services firms report significant increases in the number of projects, in project complexity, and in the penetration of Web services in their every day services activities. Clients are taking Web services standards more seriously and are turning experimentation into real implementation.

"Services firms' worldwide Web services-related revenue will increase exponentially in 2004 as companies unveil robust pipelines of opportunities," said Sophie Mayo, director of Web Services Implementation Services research at IDC. "The attention does not revolve solely around Web services anymore. Instead, more eyes are turning to toward strategic and long-term decisions around adopting standards-based services-oriented architectures (SOAs)."

IDC's supply-side research - which compiles and analyzes the survey results received from eight global IT services players during December 2003 and February 2004 - reveals that services firms are offering a continuum of services not only around Web services, but also around SOAs, including consulting, integration, training, support, and management. About half have embedded their capabilities in refined existing services offerings while the other half have adopted a dual approach, offering both Web services and SOA-specific services. Management services for Web services is still a work in progress for most.

Additional key findings from IDC's study include the following:

-- An increasing number of consultants got their hands dirty in

2003. Services firms are on a mission to train and educate

their consultants/architects/developers with new tools,

methodologies, architectures, and platforms. The skills most

needed in 2004 and beyond are business consultants and

architects.

-- The majority of projects in 2003 revolved around using Web

services for internal and external integration. In 2004, SOA

will become a major driver for Web services standards adoption

in large enterprises. Projects are expected to increase in

complexity, in size, and duration.

-- A great deal of transformational work will be embedded into

outsourcing projects. Accenture, HP, and Capgemini will be key

players to make this transformational outsourcing trend a

reality.

-- From a regional perspective, IDC research indicates that

projects are more likely to remain tactical but cutting-edge

in Europe with a major focus on cost cutting initiatives,

adoption of latest technologies, and revenue creation. In the

United States, large enterprises will more likely make

strategic investments in SOAs. Adoption in Asia/Pacific will

remain light in 2004.

One year after IDC presented an in-depth competitive analysis of leading participants in the multibillion dollar Web services-based professional services market, it revisited these service providers to understand how they have further developed their methodologies and capabilities, to hear their 2003 success stories and how they compared to the year before, and to explore their next steps.

This study, Worldwide Web Services Implementation 2004 Vendor Analysis: Global Services Companies Now Crafting Services Oriented Architectures (IDC #31090) provides a detailed profile of each participant including their current viewpoints on Web services, capabilities, track records, and planned areas of investment. The study also offers the reader a look at IDC's leadership grid, in which each participant is positioned against two axes: opportunity alignment and ability to gain share.

The 8 companies interviewed were Accenture, Capgemini, Computer Sciences Corporation (CSC), Deloitte, Electronic Data Systems (EDS), Fujitsu (Japan), Hewlett-Packard Services (HP Services), and IBM Global Services (IGS).

To purchase this document, call IDC's sales hotline at 508-988-7988 or email sales@idc.com.

For additional information about IDC's Web Services Implementation Services research, contact Anne-Sophie Dankens at 508-935-4313 or email adankens@idc.com.

About IDC

IDC is the premier global market intelligence and advisory firm in the information technology and telecommunications industries. We analyze and predict technology trends so that our clients can make strategic, fact-based decisions on IT purchases and business strategy. Over 700 IDC analysts in 50 countries provide local expertise and insights on technology markets. Business executives and IT managers have relied for 40 years on our advice to make decisions that contribute to the success of their organizations.

IDC is a division of IDG, the world's leading technology media, research, and events company. Additional information can be found at www.idc.com

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