IT Services Contracts Quarterly Analysis, Q1 2010

April 2010 | 8 pages | ID: I56194D8C86EN
Ovum

Abstracts

The global economic crisis had a major impact on outsourcing activity last year, with 2009 ranking as one of the worst for IT services contract signings since Ovum began collecting data in 2000. Data gathered in the first quarter of 2010 suggests that while there are reasons for cautious optimism, the slump is not yet over. The number of deals tracked by Ovum’s IT Services Contracts Analytics in the three months to the end of March fell to its lowest level since 2007, while quarterly total contract value (TCV) was only boosted by a handful of major public-sector awards. The overall IT services market remains overly reliant on central-government clients in the US and UK, with a notable lack of activity in key vertical markets such as financial services.

Contents

SUMMARY

Ovum view
Key messages

A SLOW START TO 2010

The number of deals was the lowest since 2007

PUBLIC SECTOR DOMINATED Q1 CONTRACT SIGNINGS

Public sector accounts for 62% of TCV
Private-sector mega-deals boosted quarterly TCV

TELECOMS WAS THE MOST ACTIVE VERTICAL MARKET

A glut of sizable IT services deals
US still the center of contract-signing activity

ANOTHER STRONG QUARTER FOR BPO DEALS

Resurgence of demand

APPENDIX

Further reading

List Of Tables

LIST OF TABLES

Table 1: Contracts data for the last five quarters
Table 2: Private-sector contracts data for the last five quarters

List Of Figures

LIST OF FIGURES

Figure 1: Vendor share of public-sector TCV
Figure 2: Vendor share of private-sector TCV