13/08-04   -   Pressmeddelande

Strong Forces at Work in the Norwegian IT Services Market, Says IDC

The Norwegian IT services market grew 0.6% in 2003 and reached NOK 16.6 billion, while outsourcing grew 5.5%, according to IDC research. Better times lie ahead and IDC calculates a compounded annual growth rate of 6.2% for 2003–2008.

There are strong forces at work in the Norwegian IT services market that will reshape the entire structure of the industry: outsourcing vendors are taking market share from IT consultants and IT support companies; there are large structural deals ahead; and offshore sourcing is already impacting the Norwegian market.

"Outsourcing will reshape the services markets as IT modernization is increasingly made part of the outsourcing projects," said Nils Molin, senior analyst at IDC Sweden. "This trend leads to increased concentration in the market as project services and customer support services become part of larger outsourcing contracts. IT consultants that lack a clear profile will have to deal with a situation where their large customers are leaving them in favor of an outsourcing vendor."

Meanwhile, vendors like WM-data and TietoEnator that have a Nordic agenda are fighting hard to make a huge impact on the Norwegian market and international vendors like HP and IBM really need to grow their business in Norway to avoid being marginalized.

At the same time, Ergo, EDB, and Ementor are also trying to figure out their future strategies and the Nordic perspective will be one important factor for them to evaluate when contemplating structural deals.

Last, but not least, there is no doubt that offshore sourcing is here to stay. Savings are huge and skill levels are not disputed. Perhaps more importantly, international vendors like HP and IBM have learned how to effectively squeeze out the right pieces and have them done offshore.

The IDC study, Norway IT Services 2003 Vendor Shares and 2004–2008 Forecast (IDC #NO560454L, August 2004) discusses these elements and highlights vendor performance in 2003, as well as the most important factors deciding the future development of the Norwegian IT services market.

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

For more information please contact:
Nils Molin
nmolin@idc.com
+4687510415

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 subsidiary 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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