$609.1 bln will be spend on external services in 2005

IDC projects that companies and governments will spend approximately $609.1 bln on external services in 2005, representing moderate growth of 6.3% over 2004. Spending will increase at a five-year compound annual growth rate of 7% to approximately $803.9 bln in 2009. Amid ongoing consolidation, a decrease in the number of megadeals, and a decrease in the average size of contracts signed, a strong outsourcing opportunity has emerged in the worldwide services industry, particularly around key horizontal business outsourcing. In addition, the project-based services segment has returned with moderate growth.