Home / Solution services market due to bounce back in 2003

Solution services market due to bounce back in 2003

In 2002 the tough economic environment restricted the growth of the solution services market, but IDC is predicting that the sector will rebound in 2003.

After a rough 2002, analyst group IDC is reporting that the worldwide solution services market will rebound in 2003 and 2004. During 2002, the growth in the solution services market was hampered by the tough economic environment, upheaval in the competitive landscape, tight IT budgets for external services and overall buyer frustration.

“IDC believes that uncertainty surrounding the war in Iraq and the economy will continue to hamper spending,” says Stephanie Torto, program manager for Systems Integration Services at IDC.

“However, given the diversity of services required in the solution services markets, the industry should weather the storm in 2003 fairly well and experience slight growth, particularly in outsourcing services,” Torto adds.

According to IDC, the supply chain management (SCM) market represents the largest growth opportunity, which will reach a market value of US$40.5 billion in 2007.

SCM will surpass enterprise resource management (ERM) services by 2005.

Customer relationship management (CRM) services will remain ahead of e-commerce services, representing the third largest opportunity through the forecast period with a compound annual growth rate (CAGR) of 8.5%.

Content management (CM), knowledge management (KM) and globalisation & localisation (G&L) services will be the fastest growing areas of the solution services market. CM will rack up 12.8% CAGR, KM 16.8%, while G&L will achieve 13.9% CAGR.

Follow us to get the most comprehensive technology news in UAE delivered fresh from our social media accounts on Facebook, Twitter, Youtube, and listen to our Weekly Podcast. Click here to sign up for our weekly newsletter on curated technology news in the Middle East and Worldwide.

REGISTER NOW | Webinar Event | Security you can bank on – Safeguarding the Middle East’s financial sector

Presented in partnership with security and network specialist Cybereason, the second in the three part webinar series will bring together a panel of experts to discuss how banks and financial institutions are evolving their service offering while simultaneously staying one step ahead of the cyber criminals who seek to bring their operations crashing to the ground.