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back to article IT services market down by 40 per cent, says Ovum

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 …

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Boffin

Downturn in mega deals not a down turn in it spending

Customers are learning that they can save money and improve quality by blending services with in-house staff. Mega deals don't reduce risk nor do the meet their cost savings objectives. (Note this a generalization.)

Large outsourcing deals lead to offshoring due to negotiated discounts in price of services. The large deals have reduced margins so the GSIs turn to offshoring as a way to keep margins... Unfortunately for the GSI, customers renegotiate new deals because of the off shoring and lower quality of services, along with an increase in cost of delivering the off shored services.

The bottom line is that GSIs fail to deliver quality and customers are shifting how they are doing ITprojects ....

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Anonymous Coward

Good thinking HP

Good thing HP decided to switch their entire company to only focus on the IT Services market.

Pure genius.

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Anonymous Coward

Apotheker good at what?

Just another conartist from Antwerp, or a genius, at what? The Bloomberg article says he managed to halve the value of SAP by the time he left. He's not as good as Hewlett and Packard at hardware, in fact he knows nothing of hardware. Its a sign of a clever conartist to be CEO of something you're ignorant about.

The cronies at Autonomy must be very happy. Of all the inside search companies around, this is most looking overpriced and underwhelming in prospects as European business crashes into recession. Good time for them to sell!

If you can't name 10 better companies to buy than Autonomy then you haven't been reading the reg.

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