Skip to main content

European IT Services Market Assessment

According to a recent IDC market study, the top 50 players accounted for 53.4 percent of the IT and business services market in Europe in 2007. Even though most of the largest vendors are still U.S.-based companies, the number of Europe- and India-based companies in the ranking has increased.

Revenue growth was particularly high in the top 21-50 vendors, with rates above 20 percent in dollars, due to a mix of organic growth and market consolidation. The aggressive growth rates of Indian players, three of which are already in the top 21-50 positions, also helped to increase the average growth rate.

The top 20 companies grew at a lower 16.2 percent in constant dollars.

In 2007, 10 players from different categories were the fastest-growing companies across the European services market:

- European service players Logica and Orange Business Services (OBS) grew at 38.6 percent and 48.5 percent, respectively, due to acquisitions. In the past two years, Logica acquired Unilog and WM-data, both of which are Europe-based companies, while OBS purchased the enterprise and managed services divisions of the Indian group GTL Limited, which specializes in IT and telecoms integration services.

- Local players ErgoGroup and Ordina reinforced their presence in the Nordic and Benelux regions, respectively. ErgoGroup strengthened its presence in the Nordics after several acquisitions completed in the last two years, including SYSteam, Allianse, Bekk Consulting, and many other smaller organizations, while Ordina grew strongly due to the acquisition of ITG Consulting Group in Belgium.

- India-based players Tata Consultancy Services (TCS), Infosys, and Wipro continued their aggressive double-digit revenue growth, with 37.4 percent, 42.1 percent, and 48.5 percent, respectively. TCS won a billion-dollar outsourcing deal with the Nielsen media group in the Netherlands. These three offshore companies continue to win in the application development and maintenance areas primarily, but are also beginning to be seen in the infrastructure area.

- Business services vendors, such as Capita, Xchanging, and Teleperformance, also grew rapidly. Growth was predominantly organic for Capita and Xchanging, with major contract wins and renewals, although both companies made small niche acquisitions during the year to build economies of scale. Teleperformance grew strongly thanks to the acquisition of the German group twenty4help Knowledge Service AG and a 62 percent interest in a French services company.

Popular posts from this blog

Global Digital Business and IT Consulting Outlook

Across the globe, CEOs and their leadership teams continue to seek information and guidance about planned Digital Transformation initiatives and the most effective enterprise organization change management practices. Worldwide IT and Business Services revenue will grow from $1.13 trillion in 2022 to $1.2 trillion in 2023 -- that's a 5.7 percent year-over-year growth, according to the latest market study by International Data Corporation (IDC). The mid-term to long-term outlook for the market has also increased -- the five-year CAGR is forecast at 5.2 percent, compared to the previous 4.9 percent. Digital Sevices & Consulting Market Development IDC has raised the growth projection despite a weak economic outlook, because of vendor performances across 2022, growth indicators from adjacent markets, increased government funding, and inflation impacts. The actual 2022 market growth was 6.7 percent (in constant currency), which was 87 basis points higher than forecast last year, alth

Why Instant Issuance Payment Cards Evolved

The global financial services sector continues to grow as more progressive organizations seek to gain a meaningful competitive advantage from their digital transformation initiatives. Across the globe, many regions are seeing a significant rise in 'instant issuance' activity from a physical and digital perspective, from both traditional and emerging innovative banking institutions. Digital Payments Market Development Customers increasingly demand instant access to banking services, with physical instant issuance enabling them to leave their branch equipped with a ready-to-go payment card. According to the latest worldwide market study by ABI Research, the market for instantly issued physical payment cards will increase from 243.2 million shipments in 2022 to a forecast of 471.1 million in 2027. "Critically, instant issuance of payment cards is no longer limited to the physical," said Sam Gazeley, industry analyst at ABI Research . Indeed, the growing digitization of p

Open Banking Usage to Grow by 470 Percent

The Open Banking business model has been advantageous for Third-Party Providers (TPPs), helping them to extend their offerings into other areas of financial services with new capabilities. Open Banking is also advantageous for traditional banking institutions, despite the perceived loss of custodianship over their data, by providing greater accessibility to more bank services. Furthermore, Open Banking can help serve Mobile Internet providers that are able to leverage it to create tailored services according to customers’ preferences and/or economic limitations. Open Banking Market Development Since traditional banking services are made more convenient by TPPs via greater data access, customers can proactively manage their finances and shape the development of new financial offerings. This is particularly noticeable in the realm of Digital Payments, where retail merchants and customers transact through eCommerce, which has the greatest number of use cases for Open Banking. These includ