IBM Extends Lead in Worldwide Outsourcing Marketplace, Analyst Says With Twenty-One Deals in the Top 100, IBM Is Number One in IT and Business Process Outsourcing

ARMONK, NY - 29 Nov 2005: IBM has extended its leadership in outsourcing, according to just-released statistics from IDC's analysis of the top 100 outsourcing deals of 2004.

According to IDC, IBM captured 21 of the biggest 100 contracts worldwide, 13 more than the nearest competitor, CSC [1].

IBM led in the number of IT outsourcing contracts with 17 deals and co-led in Business Process Outsourcing contracts, with four deals, IDC said.

"IBM continues to be successful in outsourcing because of our firm commitments to our clients, and to technology enabling business results," said Mark Morin, general manager, IBM strategic outsourcing. "The IDC report illustrates the confidence our clients have in IBM to transform IT infrastructure and business processes critical to their success."

Morin added: "Key to this commitment is the ability to work with our clients with IBM state-of-the-industry tools to analyze our client's business, end to end, from business processes, through applications, through the IT infrastructure. This enables the alignment of IT services with business priorities, and the application of a sourcing strategy which optimizes IT performance to achieve business results."

The IDC report indicates that Business Process Outsourcing contracts represented 25 percent of the Top 100 deals in 2004, up from 15.2 percent in 2003.

Source : IBM

ARMONK, N.Y. - 11 Jun 2003: IBM led the IT outsourcing business in Europe last year. According to independent analyst firm IDC's just-released report titled, "Top 100 European Outsourcing Deals of 2002," April 2003, of the Top 100 outsourcing contracts signed in Europe, IBM accounted for an aggregate total of $13.3 billion.

One of the industry's most-watched barometers of the IT outsourcing market, the IDC report cites IBM's On Demand initiative as a concept that has succeeded in "capturing the imagination of several very large clients." The report also states that "IBM Global Services is steadily taking ownership" of the concept of business transformation.

IBM's success was especially notable at the high end of the outsourcing segment, where the company won four of the six "megadeals" ($1 billion or more) listed in the IDC report. The report added that, "If the likes of IBM Global Services are going to continue snapping up the majority of very large deals (as it did in 2002) smaller players must reexamine their propositions to clients."

In terms of number of contracts signed, IBM captured 11 of the top 100 outsourcing deals in Europe last year -- more than any other competitor, according to IDC. IT outsourcing is one of the most hotly-contested segments of the technology market and is becoming increasingly important as customers seek to focus on core competencies while offloading the broad spectrum of IT functions. In an outsourcing engagement, the service provider often manages the customer's IT infrastructure as well as other IT functions such as applications and business processes, resulting in improved efficiencies, productivity gains and cost savings for the customer.

IBM's e-business On Demand services were cited by IDC as an increasingly key component of IBM's outsourcing engagements. On Demand enables companies to become more resilient and responsive to unpredictable changes in supply, demand and other variables. Allowing tight integration with strategic partners, On Demand permits variable cost structures that improve capital efficiency, productivity and cost controls.

Source : IBM Global Services

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