Featured Articles

Analysts expect ARM to do well next year

Analysts expect ARM to do well next year

British chip designer ARM could cash in on the mobile industry's rush to transition to 64-bit operating systems and hardware.

More...
Huawei and Xiaomi outpace Lenovo, LG in smartphone market

Huawei and Xiaomi outpace Lenovo, LG in smartphone market

Samsung has lost smartphone market share, ending the quarter on a low note and Xiaomi appears to be the big winner.

More...
Intel Broadwell 15W coming to CES

Intel Broadwell 15W coming to CES

It looks like Intel will be showing off its 14nm processors, codenames Broadwell, in a couple of weeks at CES 2015.

More...
Gainward GTX 980 Phantom reviewed

Gainward GTX 980 Phantom reviewed

Today we’ll be taking a closer look at the recently introduced Gainward GTX 980 4GB with the company’s trademark Phantom cooler.

More...
Zotac ZBOX Sphere OI520 barebones vs Sphere Plus review

Zotac ZBOX Sphere OI520 barebones vs Sphere Plus review

Zotac has been in the nettop and mini-PC space for more than four years now and it has managed to carve…

More...
Frontpage Slideshow | Copyright © 2006-2010 orks, a business unit of Nuevvo Webware Ltd.
Monday, 05 September 2011 10:22

IT services market takes severe hit

Written by Nick Farell
y_analyst

Contract levels fall say Ovum
Analysts at Ovum have added up the numbers and divided by their shoe size and worked out that the IT services market suffered a severe hit in the second quarter of 2011. Ovum beancounters say that the value of new contract signings falling to its lowest level in more than eight years.

The analyst states that the total contract value (TCV) of deals announced in Q2 2011 was just $19 billion, down 40 per cent on the same period last year and the lowest quarterly figure since Q1 2003. Ovum found that the number of deals recorded also slumped for the fourth consecutive quarter, to just 384. Not only was this down more than 20
per cent on the number tracked during the second quarter of 2010, but it was also the lowest number of deals recorded by Ovum in a single quarter  since Q4 2007.

Ed Thomas, Ovum analyst and author of the report said that after a disappointing start to the year, things went from bad to worse in the second quarter of 2011 with this very weak performance in contract signings. He said that there was a lack of large deals on offer was a major  contributing factor, combined with the on-going lack of demand from
private sector firms, particularly in the US.

“In previous quarters, the buoyancy of the public sector outsourcing market has gone some way toward offsetting the lacklustre returns from enterprise clients. However, on this occasion government spending on IT services projects also took a hit, with a notable lack of large-scale projects on offer,” Thomas added.


Nick Farell

E-mail: This e-mail address is being protected from spambots. You need JavaScript enabled to view it
blog comments powered by Disqus

 

Facebook activity

Latest Commented Articles

Recent Comments