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.