(Length: 16 pages)

April 4, 2006

European IT Outsourcing Deals: 2005 Review

Service Providers Run Faster To Stand Still; We Saw More Smaller Deals

This is the final document in Forrester's "2005 European Outsourcing Deals" series.

by Andrew Parker, Sonoko Takahashi

with Caroline Hoekendijk


Executive Summary (This is a document excerpt)

Forrester's quarterly outsourcing survey identified more outsourcing contracts than ever before in 2005 — we recorded 305 separate contracts. The UK stood firm at the head of the outsourcing league, but Germany faltered in its advance. Government and public sector activity growth was the single most notable feature of the year, with contract numbers up and aggregate deal value vastly increased; UK central and local government took the lion's share. As in 2004, about two-thirds of the contracts signed were new deals, but they had a higher average contract value in 2005. The number of deals for five years or less increased to about 70% of all deals. Because of this, and because many contracts clustered toward the bottom of our deal value range, most service providers had to work hard to build bookings success. But a few companies — notably EDS and BT — sustained the life of the megadeal.

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TABLE OF CONTENTS

NOTES & RESOURCES

itemMarking Out The Year-On-Year Outsourcing Shifts: 2004 To 2005

itemCountry Activity Trends Showed A Divergence Between Deal Numbers And Deal Value

itemThe Public Sector Had An Outsourcing Bonanza In 2005

itemInfrastructure Outsourcing Demand Reached A Plateau

itemSmall Shifts Resulted In More Spending

itemBuyers Wanted To Keep It Short And Simple

itemOutsourcing Providers Battled It Out In The "Small" Deal Arena

item2005's Highlights: Differentiated Offerings And Willing Buyers

itemSupplemental Material

Forrester interviewed 24 vendors, including: Atos Origin, CSC, EDB, EDS, France Télécom, HP, Lufthansa Systems, Polaris Software, Siemens Business Services, Tata Consultancy Services, Unisys, and Xansa.

Related Research Documents

itemEuropean IT Outsourcing Deals: Q4 2005

March 6, 2006, Trends

itemEuropean IT Outsourcing Deals: Q3 2005

December 21, 2005, Trends

itemEuropean IT Outsourcing Deals: Q2 2005

September 7, 2005, Trends

itemSpring Comes To Europe's Outsourcing Market

July 5, 2005, Trends

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Analyst: Andrew Parker
Technology: IT Services
Industry: Financial Services, Government, Professional Services
Geography: Europe