Feeds

IT services market down by 40 per cent, says Ovum

Mighty mega-deals of old now well-nigh extinct

Top three mobile application threats

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. ®

3 Big data security analytics techniques

More from The Register

next story
Dropbox defends fantastically badly timed Condoleezza Rice appointment
'Nothing is going to change with Dr. Rice's appointment,' file sharer promises
Audio fans, prepare yourself for the Second Coming ... of Blu-ray
High Fidelity Pure Audio – is this what your ears have been waiting for?
Did a date calculation bug just cost hard-up Co-op Bank £110m?
And just when Brit banking org needs £400m to stay afloat
Sorry London, Europe's top tech city is Munich
New 'Atlas of ICT Activity' finds innovation isn't happening at Silicon Roundabout
MtGox chief Karpelès refuses to come to US for g-men's grilling
Bitcoin baron says he needs another lawyer for FinCEN chat
Zucker punched: Google gobbles Facebook-wooed Titan Aerospace
Up, up and away in my beautiful balloon flying broadband-bot
Apple DOMINATES the Valley, rakes in more profit than Google, HP, Intel, Cisco COMBINED
Cook & Co. also pay more taxes than those four worthies PLUS eBay and Oracle
prev story

Whitepapers

Top three mobile application threats
Learn about three of the top mobile application security threats facing businesses today and recommendations on how to mitigate the risk.
Combat fraud and increase customer satisfaction
Based on their experience using HP ArcSight Enterprise Security Manager for IT security operations, Finansbank moved to HP ArcSight ESM for fraud management.
The benefits of software based PBX
Why you should break free from your proprietary PBX and how to leverage your existing server hardware.
Five 3D headsets to be won!
We were so impressed by the Durovis Dive headset we’ve asked the company to give some away to Reg readers.
SANS - Survey on application security programs
In this whitepaper learn about the state of application security programs and practices of 488 surveyed respondents, and discover how mature and effective these programs are.