IDC predicts service consolidation

Survey finds top 50 providers control 55 per cent of the market, but says mergers are inevitable
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The top 50 IT service providers dominate over half the market in Western Europe, according to the latest figures from IDC.

The Western European service market increased by around 8.5 per cent, driven by healthy growth in demand from IT users. IDC also found that the top 50 service vendors grew by 9.7 per cent on average, or 1.2 per cent of the overall market.

However, the analyst warned that 2009 is likely to see continued consolidation, similar to the recent mergers between HP and EDS, and Oracle and Sun, as well as the acquisition of Fujitsu Siemens Computers by Fujitsu Services.

"With a few exceptions, most of the vendors in the top 50 ranking enjoyed growth driven by increased sales, combined with small acquisitions to strengthen their presence in specific geographies or industries, or to gain global sourcing capabilities," said research manager, European Services Market and Competitive Insights, Laura Converso.

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