Feeds

IT services market down by 40 per cent, says Ovum

Mighty mega-deals of old now well-nigh extinct

Internet Security Threat Report 2014

Disappearing mega-deals saw the global IT services market slump to an eight-year low in the second quarter, according to Ovum.

Stats from the beancounter show that total contract values (TCV) dived 40 per cent year-on-year to $19bn as the number of agreements penned fell by a fifth to 384.

The market went from "bad to worse" in Q2 following a lacklustre opening quarter in 2011, said Ovum analyst Ed Thomas.

"The distinct lack of large deals on offer was a major contributing factor, combined with the ongoing lack of demand from private sector firms, particularly in the US," he said.

The lack of heavy-duty agreements was also apparent in the government space, which had for the past few years been a boon for IT services provider to cling to as commercial organisations reeled in their budgets.

TCV in the private sector were hit most in North America, accounting for just 15.5 per cent of the market worldwide compared to nearly 40 per cent a year ago.

But Europe was responsible for 58 per cent of TCVs among commercial organisations, with a healthy amount of contracts inked in Scandinavia.

The UK software and services market is predicted to hop along for several more years according to the veteran analysts at TechMarketView, who claimed the sector will keep shrinking until 2013. ®

Beginner's guide to SSL certificates

More from The Register

next story
Bono apologises for iTunes album dump
Megalomania, generosity and FEAR of irrelevance drove group to Apple deal
HBO shocks US pay TV world: We're down with OTT. Netflix says, 'Gee'
This affects every broadcaster, every cable guy
Facebook, Apple: LADIES! Why not FREEZE your EGGS? It's on the company!
No biological clockwatching when you work in Silicon Valley
Arab States make play for greater government control of the internet
Nerds told to get lost in last-minute power grab bid at UN meeting
Apple SILENCES Bose, YANKS headphones from stores
The, er, Beats go on after noise-cancelling spat
Zippy one-liners, broken promises: Doctor Who on the Orient Express
Series finally hits stride, but Clara's U-turn is baffling
Don't bother telling people if you lose their data, say Euro bods
You read that right – with the proviso that it's encrypted
America's super-secret X-37B plane returns to Earth after nearly TWO YEARS aloft
674 days in space for US Air Force's mystery orbital vehicle
Doctor Who's Flatline: Cool monsters, yes, but utterly limp subplots
We know what the Doctor does, stop going on about it already
prev story

Whitepapers

Forging a new future with identity relationship management
Learn about ForgeRock's next generation IRM platform and how it is designed to empower CEOS's and enterprises to engage with consumers.
Win a year’s supply of chocolate
There is no techie angle to this competition so we're not going to pretend there is, but everyone loves chocolate so who cares.
Why cloud backup?
Combining the latest advancements in disk-based backup with secure, integrated, cloud technologies offer organizations fast and assured recovery of their critical enterprise data.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
Saudi Petroleum chooses Tegile storage solution
A storage solution that addresses company growth and performance for business-critical applications of caseware archive and search along with other key operational systems.