Fri 08 Aug 2008

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Edited by Paul Hales

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Big growth rates for system integrators

Growing big and strong

EUROPE’S LEADING system Integrators posted growth rates well above the industry average over the last year, according to a leading provider of strategic business intelligence.

IT Europa published the report entitled "Systems Integrators in Europe –The Top 700" today, which spans 38 different countries and gives detailed business profiles including sales breakdowns by company activity, the market they operate in, their staff count and development plans.

According to the report, each of the top 700 European Systems Integrators, between them, employ 1.29 million people. The average growth rate for the companies combined was a healthy 11.27 per cent, and combined sales last year valued a whopping $169.96 billion (€107.57bn). The report seems to point to the fact that Europe’s IT industry is becoming ever more based on applications and service based sales.

The highest country specific growth rates were attained by Germany (average 18.45 per cent) followed by Italy (16.98 per cent) and Poland (16.35 per cent). Norway came bottom of the table with a miserly 4.58 per cent rate of growth. Of the companies topping the table, Dimension Data grew by an impressive 23.5 per cent, whilst Accenture and IBM grew by 19.8 per cent and 18 per cent respectively.

IT Europa Research Manager, Christine Bardwell, said that "What we are seeing here is mainly geographic growth as companies set up operations in other regions, particularly Eastern Europe".

Alan Norman, IT Europa’s Managing Director, added that organisations were becoming increasingly reluctant to risk the deployment and managing of large scale IT systems and infrastructures themselves, saying, "they want Systems Integrators to take responsibility for managing the increasing complexity for them”. He also noted the apparent trend in moving towards lower cost near-shore resources from the developing Central and Eastern European markets. µ

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