System integrators look back on a strong 2005
Analyst claims a modest growth in the SI market represents ‘a healthy customer demand'
The system integrator (SI) market is in the best shape since the dot-com boom, according to analyst IDC.
Its report – Worldwide and US Systems Integration 2005 Vendor Shares: Top 10 Vendors for 2005 – discovered that in 2005 the worldwide SI services market experienced its best 12 months since the late 1990s.
IDC found that after years of below-par returns, the worldwide market experienced moderate growth of about four per cent in 2005, which indicated “a healthy customer demand”.
Other report findings included the diversity of players found in the worldwide SI market, which reflects the overall landscape of the IT services market where vendors come from a variety of backgrounds.
Stephanie Torto, programme manager for systems integration business strategies research at IDC, said: “SIs that have invested in emerging areas, stayed close to customers and focused on efficient execution are well positioned to capitalise on the market as it improves.
“Companies that will succeed in the SI market will be those that embrace the evolution of the software environment, collaborate closely with partners and customers, possess a strong understanding of industry-specific business processes and have a mature and seamless global delivery capability.”
Rob Campbell, managing director of SI Kavanagh, said: “We definitely agree with the IDC findings. There is a lot of activity in the market. There are more large companies that need SIs with the skills and experience.”
Campbell added that in the past, large businesses have attempted to reduce costs by slimming down their internal IT capabilities. So when they do decide to expand, they need the external assistance of a SI.
“A lot of end-users are looking at disaster recovery, and virtualisation has also been big with customers,” he said.
He added that the finance vertical is going well for SIs, while due to its history, Kavanagh has been doing well in manufacturing and retail.
“I expect the SI market will continue to generally increase as end-users want continued support,” Campbell said.