Who’s the Next IT Acquirer?
© kennethgray
In a recent Computerworld article, AMR Research Director Phil Fersht suggests that there may be more consolidation in the IT Outsourcing market.
Given that the big hardware players – IBM, Dell and HP – have already jumped into the mix, it is an open question as to who the next buyer will be. Telecom? Offshore? Peripherals?
Because of the historic downward pressure on services revenues, Mr. Fersht suggests two likely outcomes for mid-sized providers – either specialize or get acquired.
Of course, if deals continue the trend toward shrinkage, more specialized shops will have a leg up over the large, general-practice providers, both in price and expertise. In any event, the next year could prove to be an interesting transition of our business.
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Gary,
Good article. I don’t think there is any question that the coming 12 months there will be more acquisitions in the outsourcing space. I suspect that we will see an Indian IT services firm pick of a mid sized US/European services firm. The market needs more consolidation and the offshore firms need to move up the value chain.
Mike
Comment by Offshore Advisor on October 6, 2009 8:10 am
Usually many country like America, Canada and other 1st world country are doing Business Outsourcing to 3rd world country like the Philippines and India because of cheaper wage. MyGlobalStaff.com
Comment by jm888 on November 10, 2009 10:34 am