IBM GSA tops local services market: IDC

IBM Global Services Australia (IBM GSA) continues to dominate the Australian outsourcing market, according to a report released by IDC this week.

IBM GSA leads global services companies EDS and CSC with estimated 1999 revenue of $910 million. EDS earned an estimated $654 million and CSC recorded $265 million, according to the report.

Together, IBM GSA, EDS and CSC hold 65 per cent of the total outsourcing market.

Kathy Beckman, IDC senior analyst, services said value-added services will continue to differentiate IT companies in a "trend which is not going to stop any time soon".

"Today, hardware has become a commodity and what differentiates IT companies is the added value that they can provide through services," she said.

"As we observe the migration of IT talents from non-IT companies into the IT industry, as well as the economies of scale created by the one-to-many models applied by external IT services providers, it will be more economical for companies to call on external IT services providers instead of fighting to keep their IS departments staff savvy about the new technologies."

Beckman said technology owners should align their strategy toward a complete solution including hardware and software.

"(Companies) prefer a single point of contact. Therefore the onus is on the primary contractor to find 'best of breed' partners that adequately complement their core competencies," Beckman said.

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