10/01-05   -   Pressemeldinger

Norwegian Outsourcing Market Reaches Almost NOK 8 Billion in 2004, Says IDC

In a new study of the Norwegian outsourcing market, IDC estimates that revenue reached almost NOK 8 billion in 2004, while growth ostensibly reached almost 23%. However, much of this growth is a technicality and comes from the fact that Telenor and Posten opened for competition on outsourcing, so that revenue from original outsourcing contracts, previously regarded as captive, is now recognized as part of the open market, resulting in higher apparent market growth. If these contracts were excluded, growth would be 7% to 8%, which while higher than in other parts of the IT services market, is lower than outsourcing growth in most other European countries. IDC expects that growth will exceed 20% over the next year — provided that Norsk Hydro signs a comprehensive outsourcing deal during 2005 as expected.

The Norwegian outsourcing market shows new trends that IDC predicts will continue into 2005:
· After a period with several mega-deals — DnB NOR, Telenor, defense contracts — few new mega-deals will be signed. The Norsk Hydro deal will be an outstanding exception.
· Companies that already partially outsource are ready for enhancements, whereas first-timers are more reluctant.
· Medium-sized and small companies are starting to outsource, and these companies often go for full IT outsourcing in one step.
· Security outsourcing, IP telephony hosting, and ERP hosting grow rapidly in companies of all sizes.

The Norsk Hydro deal will dramatically change market shares. But besides this, IDC expects that the trend towards concentration that has been ongoing for some years and has continued through 2004 will decrease. The arrival of medium-sized buyers makes room for smaller suppliers, and specialized vendors will see their niches grow. Medium-sized vendors with broad offerings will have the hardest time, as they cannot create economies of scale and their market profiles are less clear.

IDC´s study, Norway: IT Outsourcing and Utility Services 2003 Vendor Shares and 2004–2008 Forecast (IDC #NO560524L, January 2005), also looks at the so-called "utility services" — IT delivered on demand and paid on a usage basis, in which IDC finds increasing interest as a delivery model as part of a larger outsourcing contract. The study analyzes the Norwegian outsourcing market in 2003 and 2004 in five segments and forecasts development up to 2008. The positioning and strength of different vendors in the future market are also evaluated.

To purchase this document, please contact your local IDC office or visit www.idc.com.

For more information please contact:
Mette Ahorlu
+45 39 16 22 22
mahorlu@idc.com