Feeds

IT services market down by 40 per cent, says Ovum

Mighty mega-deals of old now well-nigh extinct

Using blade systems to cut costs and sharpen efficiencies

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. ®

The Essential Guide to IT Transformation

More from The Register

next story
BBC goes offline in MASSIVE COCKUP: Stephen Fry partly muzzled
Auntie tight-lipped as major outage rolls on
iPad? More like iFAD: We reveal why Apple fell into IBM's arms
But never fear fanbois, you're still lapping up iPhones, Macs
Amazon Reveals One Weird Trick: A Loss On Almost $20bn In Sales
Investors really hate it: Share price plunge as growth SLOWS in key AWS division
Bose says today is F*** With Dre Day: Beats sued in patent battle
Music gear giant seeks some of that sweet, sweet Apple pie
There's NOTHING on TV in Europe – American video DOMINATES
Even France's mega subsidies don't stop US content onslaught
You! Pirate! Stop pirating, or we shall admonish you politely. Repeatedly, if necessary
And we shall go about telling people you smell. No, not really
Too many IT conferences to cover? MICROSOFT to the RESCUE!
Yet more word of cuts emerges from Redmond
Chips are down at Broadcom: Thousands of workers laid off
Cellphone baseband device biz shuttered
Twitch rich as Google flicks $1bn hitch switch, claims snitch
Gameplay streaming biz and search king refuse to deny fresh gobble rumors
prev story

Whitepapers

Top three mobile application threats
Prevent sensitive data leakage over insecure channels or stolen mobile devices.
Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.
Designing a Defense for Mobile Applications
Learn about the various considerations for defending mobile applications - from the application architecture itself to the myriad testing technologies.
Build a business case: developing custom apps
Learn how to maximize the value of custom applications by accelerating and simplifying their development.