| | According to a recent
study published by
industry watcher IDC,
the top 50 players
accounted for 53.4% of
the IT and business
services market in
Europe in 2007. Even
though most of the
largest vendors are
still US-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% 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% 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% and
48.5%, 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, which
specialises in IT and
telecoms integration
services.
● Local players | |
|
| | ErgoGroup and Ordina
reinforced their
presence in the Nordic
and Benelux regions,
respectively. ErgoGroup
saw several acquisitions
completed in the last
two years, including
SYSteam, Allianse, Bekk
Consulting, and many
other smaller
organisations, 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%,
42.1%, and 48.5%,
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
thanks to the
acquisition of the
German group twenty4help
Knowledge Service AG and
a 62% interest in a
French services | |
|
| | company.
“With few exceptions,
acquisition remained the
main driver for revenue
growth in 2007,” says
Laura Converso, research
manager, European
Services Market and
Competitive Insights.
“However, India-based
companies such as TCS,
Infosys and Wipro mainly
grew organically.
Pure-play offshore
vendors already account
for 4% of the IT
services market and
their combined market
share is growing fast
thanks to increasing
acceptance in key
European geographies,
such as the Nordics,
Benelux, and Germany,
combined with their need
to reduce the dependence
on a low-growth US
market.” | |
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