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Global IT services market ends 2010 with unexpected bang avaliable through Bharatbook.com

Press Release   •   Feb 22, 2011 11:58 IST

Bharatbook.com annaounces inclusion of latest report on "IT Services Contracts Quarterly Analysis"( http://www.bharatbook.com/detail.asp?id=98925&rt=IT-services-contracts-quarterly-analysis-Q2-2010.html )

IT services deal signings experienced an unexpected boom at the end of 2010, beating gloomy predictions to hit the highest fourth-quarter total contact value (TCV) for seven years, according to Ovum.

In a new report* the independent technology analyst reveals research that shows that globally, TCV for the last quarter of 2010 soared to more than $49 billion, up 66 per cent on the previous three months. This was the highest quarterly TCV recorded for more than four years and the highest fourth quarter TCV since 2003.

Ed Thomas, Ovum analyst and author of the report, said: “2010 went out with a bang thanks to a number of mega-deals announced during the fourth quarter. It was a remarkable turnaround for the sector which, after a sluggish first three quarters, was forecast to hit its lowest annual TCV level for five years. However, rather than enduring another stagnant quarter, a string of large deals meant that the IT services market exploded into life.”

TCV for the nine months to the end of September stood at $96.4 billion, down nine per cent on the same period for the previous year and the worst return after three quarters since 2005. However, deals such as the agreement between Atos Origin and Siemens, which was valued at more than $7 billion, meant that TCV for 2010 quarter actually increased by over 6 per cent when compared to the previous year.

According to Ovum’s research, before the last three months of 2010 one of the major trends in the market was towards smaller deals. However this was completely turned on its head in Q4, when more mega-deals were signed than in the previous four quarters combined and the average contract value leapt to more than $100 million.

“It remains to be seen whether the spectacular end to the year is simply a blip or a sign of better times to come for the IT services industry in 2011,” added Thomas.

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Bharatbook.com annaounces inclusion of latest report on "IT Services Contracts Quarterly Analysis"