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2009 Readers' Choice Survey: Outsourcing/IT Integration

1/22/2009
The Outsourcing and IT Integration category gets CGT's vote for most active news-wise in 2008. For one, HP completed its acquisition of EDS for approximately $13.9 billion, creating a leading force in technology services. Their collective services businesses had annual revenues of more than $38 billion at the end of 2007.

Top 10
 1.   IBM
 2.   HP/EDS
 3.   Cognizant
 4.   Accenture
 5.   Infosys
 6.   Deloitte
 7.   CSC
 8.   TCS
 9.   Wipro Technologies
10.  BearingPoint
Dana Stiffler, research director, AMR Research, says the HP/EDS deal is one of the biggest this market will see for a while, but the traditional global integrators and larger Indian players will continue to pursue local consultancies in North America and Europe with ERP or industry/functional specialties.

We also saw a number of outsourcing/IT integration partnerships emerge in the latter half of the year, even with an economic recession upon us. "The current economic state will force more adoption of and more creative approaches to outsourcing and offshoring and not less," reports Stiffler.

In November, HP was awarded a seven-year infrastructure services contract from Sara Lee Corporation to manage its global technology environment. The deal is part of Sara Lee's global transformation to increase operational efficiencies and reduce costs across its businesses around the world.

And in October, IBM signed a five-year agreement with Panasonic Corporation of North America to provide several outsourcing services to support Panasonic's growing global operations.

The future of this category will evolve as infrastructure services merge with application outsourcing, and application services merge with business process outsourcing, says Stiffler. "Companies that already rely on an outsourcing partner for the bulk of their enterprise application support, for example, will start to rely on their service provider partner for business process support as well."

For companies already engaged in standard business process outsourcing relationships -- think finance and accounting -- Stiffler predicts an expansion of the services relationship beyond transactional functions to include planning, budgeting, forecasting and managed analytics.


BREAKOUT FAVORITES

Customer Experience: Accenture
In 2008, the International Association of Outsourcing Professionals (IAOP) named Accenture to the No. 1 spot on the Global Outsourcing 100, its annual ranking of the world's top outsourcing service providers. The IAOP cited "Customer Testimonials" as Accenture's key strength.



SMB Market: IBM
In June 2008, IBM signed a five-year services agreement with Godiva Chocolatier Inc., which has annual revenues of more than $400 million, to manage its IT infrastructure. "To support Godiva's global needs, we needed an IT partner that could help us scale our infrastructure."
-- Mike Giresi, VP, Global IT, Godiva (Source: IBM Press Release, September 2008)



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