IT Consulting - Global Outlook

Global Industry Analysts, Inc, January 2012, Pages: 101

The global outlook series on IT Consulting provides a collection of statistical anecdotes, market briefs, and concise summaries of research findings. The report briefly analyzes the impact of global financial crisis and contracting IT budgets on the industry. The report also recapitulates recent noteworthy mergers, acquisitions, and other strategic developments.

Regional markets briefly abstracted include the United States, Europe, France, Germany, the United Kingdom, Italy, Asia-Pacific, China and India. Also included is an indexed, easy-to-refer, fact-finder directory listing the addresses, and contact details of 306 companies worldwide.

Please note: Reports are sold as single-site single-user licenses. Electronic versions require 24-48 hours as each copy is customized to the client with digital controls and custom watermarks.

For information on site licence pricing please click on Enquire before buying.

IT CONSULTING

A GLOBAL OUTLOOK, JANUARY 2012

CONTENTS

1. INDUSTRY OVERVIEW 1
A Prelude 1
IT Consulting - The Early Days 1
Trends Shaping the Future of the IT Consulting Industry 2
New Growth Drivers Emerge During Recession 2
Key Contributing Factors for the Development of IT Consulting 3
IT Consultants Focus on Delivering Value to Clients 3
Globalization Becomes Mandatory for IT Consulting Service
Providers 4
Cloud-based and Virtual Offerings Gaining Popularity 4
Widespread Adoption of Virtualization Continues 4
Virtualization Consulting to Become a Staple Service Offering
with IT Consultants 4
Table 1: Global Virtualization Market by Segment (2011):
Percentage Share Breakdown of Value Sales for Hardware
Support Services, Systems Integration, Software Support
Services, IT Consulting and IT Education and Training 5
Green IT Consulting - A Niche Segment of IT Consulting 5
Competitive Scenario 5
A Highly Fragmented Market 5
Table 2: Leading Global Business and IT Consulting Service
Providers (2010): Percentage Share Breakdown of Revenues for
Deloitte, IBM, PricewaterhouseCoopers, Accenture, Ernst &
Young, CSC, KPMG International , Fujitsu, HP, Capgemini and
Others 6
Market Outlook 7
Table 3: World Current & Future Analysis for IT Consulting by
Geographic Region - US, Europe and Rest of World Markets
Independently Analyzed with Annual Revenue Figures in US$
Billion for Years 2010 through 2015 7

Table 4: World 5-Year Perspective for IT Consulting by
Geographic Region - Percentage Breakdown of Annual Revenues
for US, Europe, and Rest of World Markets for Years 2011 and
2015 8

2. IT SERVICES MARKET - AN OVERVIEW 9
Introduction 9
Table 5: Leading Vendors in the Global IT Services Market
(2010): Percentage Share Breakdown of Revenues for IBM, HP,
Fujitsu, Accenture, CSC and Others 9
Companies in West Cutback on IT Budgets during Recession 9
Table 6: Global IT Spend (2011): Percentage Share Breakdown
by Segments - Telecom, IT Services, Computer Hardware and
Enterprise Software 10

3. GLOBAL CONSULTANCY MARKET - AN OVERVIEW 11
Consulting Market 11
Current Trends in the Global Consultancy Market 11
Contingency Pricing Becomes a Common Practice 11
Manufacturers Offer Consulting as Additional Service 11
Development of Internal Consulting Divisions to Take a Toll
on External Consulting Firms 12
Consultancies Go Global 12
Market Players 12
Table 7: Leading Global Consultancy Service Providers (2009):
Percentage Share Breakdown of Revenues for Deloitte, IBM,
PricewaterhouseCoopers, Accenture, Ernst & Young, CSC, KPMG
International, Fujitsu, HP, Capgemini and Others 12

4. IT PROFESSIONAL SERVICES INDUSTRY - AN OVERVIEW 13
Changing Dynamics of the IT Professional Services Industry 13
Table 8: Leading Global IT Professional Service Providers
(2009): Percentage Share Breakdown of Revenues for IBM, HPES,
Accenture, Fujitsu, CSC, Capgemini, and Others 14

5. IT OUTSOURCING - AN OVERVIEW 15
Global IT Outsourcing Down Even in 2011 15
Table 9: Global IT Outsourcing Spend (2010): Percentage Share
Breakdown by Segments - Data Center Outsourcing, Network
Outsourcing, Enterprise Application Outsourcing and Desktop
Outsourcing 15

Table 10: Global Software Exports (2010): Percentage Share
Breakdown by Exporting Country - India, Philippines, China,
Mexico, Russia, Brazil and Others 15
IT Outsourcing Deals Shrink in Size 16
IT Outsourcers on the Look Out for Greener Pastures Beyond US
and UK 16

6. SERVICE OVERVIEW 17
Information Technology Consulting 17
Scope of IT Consulting 17
IT Strategy Consulting 17
IT Organizational Consulting 17
IT Infrastructure Consulting 17
Non-technological IT Consulting 17
e-Solutions Consulting 18
IT Training 18
Top Five IT Consulting Fields Ranked on the Basis of
Significance 18
Top Five Reasons Why Enterprises Authorize IT Consulting
Projects - Ranked on the Basis of Significance 18
Evolution of the IT Consulting Business 18
Impact of the Internet Market Downfall 19
Structural Organization 19
Contractors 19
System Integration - SI 20
IT Business Outsourcing 20
Independent IT Outsourcing Firms 20

7. STRATEGIC CORPORATE DEVELOPMENTS 21

8. PRODUCT/SERVICE LAUNCHES 44

A REGIONAL MARKET PERSPECTIVE 47

1. THE UNITED STATES 47
IT Services Market - Overview 47
Table 11: Leading Business and IT Consulting Service
Providers in North America (2010): Percentage Share Breakdown
of Revenues for Deloitte, PricewaterhouseCoopers ,IBM, SAIC,
CSC, Northrop Grumman, Ernst & Young , Accenture, Oracle,
KPMG and Others 47

2. CANADA 48

3. EUROPE 49
IT Services and Software 49
Table 12: IT Services Market in Europe (2010): Percentage
Share Breakdown by Segment 49
IT Consulting - Market Outlook 49
Table 13: European Current & Future Analysis for IT
Consulting by Geographic Region - France, Germany, Italy, UK,
Spain and Rest of Europe Markets Independently Analyzed with
Annual Revenue Figures in US$ Billion for Years 2010 through
2015 50

Table 14: European 5-Year Perspective for IT Consulting by
Geographic Region - Percentage Breakdown of Revenues for
France, Germany, Italy, UK, Spain and Rest of Europe Markets
for Years 2011 and 2015 51

Table 15: Leading Business and IT Consulting Service
Providers in Europe (2010): Percentage Share Breakdown of
Revenues for Deloitte, Accenture, Logica, Capgemini, IBM,
PricewaterhouseCoopers, Ernst & Young, KPMG, Fujitsu, HP and
Others 52
Increasing Popularity of SaaS 52
Growth Potential in Eastern Europe 52
Table 16: Leading Business and IT Consulting Service
Providers in Eastern Europe (2010): Percentage Share
Breakdown of Revenues for S&T, Deloitte, IBM, Ernst & Young,
Accenture, Alcatel-Lucent, PricewaterhouseCoopers, SAP, KPMG,
Oracle and Others 53

3a. FRANCE 53

3b. GERMANY 54
An Overview of the German IT Market 54

3c. THE UNITED KINGDOM 55
UK Government to Prune Down IT Spending 55
IT Services 55
Table 17: Market Share of Leading Players in the UK IT
Services Market (2010) 55

Table 18: IT Services Market in the UK (2010): Percentage
Breakdown by Sector 56
IT Consulting: An Outlook 56

3d. ITALY 56

3e. GREECE 57

3f. RUSSIA 57
IT Consulting to Grow at a Strong Rate in Russia 57

4. ASIA-PACIFIC 58
The Asian Market for IT Services 58
New Technology Adoption to Rake in Demand for IT Consulting 58
Table 19: Asia-Pacific Market for Consulting (2010):
Percentage Share Breakdown of Revenues by Segment -
Information Technology, Operations Management, Human Resource
Management, Outsourcing Services and Corporate Strategy 58

Table 20: Leading Business and IT Consulting Service
Providers in Asia-Pacific (2010): Percentage Share Breakdown
of Revenues for - IBM, Samsung SDS, Accenture,
PricewaterhouseCoopers, KPMG, Ernst & Young, Deloitte, CSC,
UXC, LG CNS and Others 59

4a. CHINA 60
Overview 60
Increasing IT Spend to Boost the Consulting Segment in China 60

4b. INDIA 61
An Overview of the Indian IT Market 61
Table 21: Indian Market for IT Services (2010): Percentage
Share Breakdown of Revenues by Segment - Development and
Integration, Software Support, Hardware Maintenance and
Support, IT Management, Consulting and Process Management 61
IT Industry Braves Recession 62
Indian IT Consulting Space - An Overview 62
What is holding back the Indian Consulting Market? 62

4c. INDONESIA 63
An Overview of the Indonesian IT Market 63

4d. JAPAN 64
Japanese IT Market - Overview 64
Table 22: Leading Business and IT Consulting Service
Providers in Japan (2010): Percentage Share Breakdown of
Revenues for Fujitsu, NEC, IBM, NTT Data, Hitachi, Normura
Research, PWC, IT Holdings, Mitsubishi Electric, Nihon Unisys
and Others 64

5. LATIN AMERICA 65
IT Consulting 65
Table 23: Leading Business and IT Consulting Service
Providers in Latin America (2010): Percentage Share Breakdown
of Revenues for Deloitte, PricewaterhouseCoopers, IBM, Ernst
& Young, HP, SAP, Oracle, Accenture, McKinsey & Co, Ericsson
and Others 65
Overview of Select IT Markets in Latin America 65
Brazil 65
Mexico 66

GLOBAL DIRECTORY

During the recent recession, the global IT consulting market exhibited steady growth as enterprises continued to seek consulting services for survival in a challenging market environment. The demand drivers for IT consulting fundamentally changed under the impact of recession. Growth is now driven by factors such as a strong natural demand, increased role of off shoring and globalization, shortage of talent in the advanced countries, and the superiority of offshore labor market. IT consulting continues to play a crucial role in enhancing competitiveness of companies in the international markets. An ideal IT consulting engagement would render successful management of every day challenges within the IT operations of an organization.

One of the major trends in the global IT Consulting market is the opportunities brought in by some of the latest technologies such as cloud computing and others. Cloud services are now an important area attracting attention and investment of service providers mainly because of the cost benefits offered. Also, adoption of virtualization in both emerging as well as mature markets is happening at a faster pace than before. Virtualization consulting, which covers pre-sales consulting and integration is expected to witness increased demand against such a backdrop. Consulting companies are playing a major role in helping the transition of enterprises to such new technologies.

India, China and Australia are expected to be the major economies spending significantly on IT services in Asia, mainly riding on the outsourcing wave as well as cloud and smart infrastructure. The consulting business in India initially started off on basis of cost arbitrage, with enterprises from Western countries looking towards Indian IT industry as a low cost provider of consulting services. However, with increasing globalization, Indian IT consultants are more sought for knowledge, innovation and scalability offered. India holds strong potential to emerge as a lucrative KPO destination in future with full service offerings including capacity planning, data center managements and other associated services that follow consulting. Nevertheless, the industry faces strong competition from China. Several IT consulting companies have emerged in China, which are capable of delivering work, quality of which is very close to that of Indian service providers.

The leading ten business and IT consulting service providers together account for only 30% of the fragmented and heterogeneous market. The remaining market is accounted for by several smaller service providers. However, while the global market is highly fragmented, few regional markets are relatively more concentrated.

Global Industry Analysts ©

Customers who bought this item also bought

• Facilities Management - Global Strategic Business Report
• Industrial Rubber Products - Global Strategic Business Report
• Heat Exchangers - Global Strategic Business Report
• Hand Tools And Accessories - Global Strategic Business Report
• eLEARNING - Global Strategic Business Report
• Asphalt - Global Strategic Business Report
• Personal Protective Equipment - Global Strategic Business Report
• Load Cells - Global Strategic Business Report
• Industrial Furnaces and Ovens - Global Strategic Business Report
• Disinfectants - Global Strategic Business Report