European IT/Telecom Converged Service Delivery Outsourcing Deals: H2 2007

After a disappointing performance in the first half of 2007, the European Converged Service Delivery (CSD) market made a strong comeback in the second half of 2007. The overall number of deals containing converged IT and telecom services increased by nearly 70% compared with the first half of 2007. Meanwhile, telecom service providers dominated the CSD vendor landscape — we didn't track a single deal signed by an IT service provider, despite the ongoing high demand for IT services components like help desk, managed LAN, and support services. The business services sector clearly led this time in terms of signed deals as well as total deal volume. The UK lost its top position in terms of CSD deal activity and overall volume to the Netherlands, but it still represents one of the most mature CSD markets. Megadeals disappeared from the CSD stage, while small deal volumes and medium contract lengths of between two and five years dominated the picture.