IT outsourcing grew 37% in 2004

The IT outsourcing market grew by 37% in 2004, but was characterised by a larger number of smaller deals and greater competition among vendors. Datamonitor measured all new outsourcing, systems integration and consultation deals worth over $1 mln and tracked 1,814 such deals in 2004 – up 4.4% over 2003. IBM Global Services remains the market leader with a 10.7% share. The top ten vendors accounted for only 57% of the total market in 2004 compared to 68% in 2003.