IBM's Global Services Dominates Network Consulting & Integration Services Market, According to IDC - Company Business and Marketing

EDP Weekly's IT Monitor, April 17, 2000

According to a recent report from IDC, IBM Global Services has a commanding position in the worldwide network consulting and integration services market. The vendor captured 16 percent of the market's $19.3 billion revenues in 1999. IBM's share is more than twice that of EDS, its closest competitor, which has a seven percent market share. The only other vendor with more than five percent of the worldwide market was Getronics.

In looking at the competitive landscape in the US market, IDC sees even greater fragmentation. Underscoring this theme, the top 10 vendors accounted for only 48 percent of the US market, and only IBM with 12 percent and EDS with eight percent had shares exceeding five percent. The remaining players in this segment of the market are emerging regional firms looking to compete on selected engagements and partner with larger companies in a sub-contractor role.

IDC expects the worldwide market opportunity to remain attractive through the next several years, generating a compound annual growth rate between 1999-2004 of nearly 16 percent. Along with the market's increasing attractiveness, however, will come increasing demands and expectations from end users, including emerging service providers, such as ISPs, ASPs, and cable providers.