Systems Integration market shows continued growth

• further mergers and acquisitions forecast for year ahead
• Systems Integrators increase influence on purchase decisions

Europe’s Top 10 Systems Integrators enjoyed average growth rates of just over 5% last year, according to the latest database report “Systems Integrators in Europe - The Top 550” from IT Europa. This steady growth, however, masks financial challenges and further structural upheaval which are forecast to give rise to increased levels of merger and acquisition activity during the year ahead.

The new report provides detailed profiles of all of Europe’s leading Systems Integrators, including key executive contacts, strategies, alliances, vertical markets served and financial data. It also charts the winners and losers in the sector over the last year. Amongst the winners, IBM Global Services, BT Global Services, Capgemini and HP Services all made steady progress, while SBS, Fujitsu Services and LogicaCMG slipped back (LogicaCMG dropping out of the top 10).

“After 12 months of comparative stability, as some of the larger players digested recent acquisitions, we are likely to see further consolidation in the marketplace and an increase in merger and acquisition activity in the coming year. The emerging Central and Eastern European markets will be a particular focus for alliances” commented Andrew Seymour, Editor of IT Europa. “This is a maturing market, but one that is far from saturated. The biggest advances are being seen amongst the middle tier of Systems Integrators with specialist vertical market skills and there are plenty of opportunities for innovative service companies which are able to deliver real value” he added.

Systems Integrators continued to lead recovery in the IT services sector, with average growth rates five times that of the sector as a whole, as more organisations look outside for expertise in managing and integrating increasingly complex technologies. “All our research points to systems integrators taking an increasingly important role in shaping and influencing purchase decisions. In the Government sector they are now a major influence in more than 80% of contracts” commented Chris Boeree, Chairman of IT Europa“.

Between them the top 10 System Integrators employed nearly 350,000 people and enjoyed sales of $73 Billion.

The top 10 for 2003 were:

1. IBM Global Services
2. T-Systems
3. BT Global Services
4. Siemens Business Services
5. EDS
6. HP Services
7. Accenture
8. Capgemini
9. Atos Origin
10. Fujitsu Services

The IT Europa report “Systems Integrators in Europe - The Top 550”, is published today. It is available from www.iteuropa.com

IT Europa is Europe’s leading source of market intelligence on the European IT and Telecoms market place. The IT Europa newsletter provides up-to-date news and analysis on the European IT market and its channels. Other database reports include profiles of the leading European Distributors, Corporate Resellers, Retailer Channels, PC Assemblers, Solution VARs, ISVs and Convergence Specialists as well as reports on a regional and national basis.

Contacts:

For further information or comment contact:
Andrew Seymour,
Editor, IT Europa,
Tel: (+44) 1895 454595