European Telecom Operator Managed Services Deals Survey: H1 2009

Forrester's seventh survey of managed services deals signed in Europe by telecom service providers reviews 812 contract wins recorded in the first half of 2009. The number of deals increased from the 476 that we tracked in H2 2008 and was by far the largest count since we started the deal tracker in 2006. The total contract value (TCV) also leapt to €7.8 billion, much higher than the €3.3 billion seen in the previous six months, and even slightly more than the €7.7 billion that we saw in H1 2008, which was itself a record figure. Continuing the trend over the past three years, the majority of the deals are small and short-term, with three megadeals reported in the first half of the year — the same number reported in the first half of 2008. The percentage of converged deals — those with both a telecom and an IT services component — recovered from 3% in H2 2008 to 10%. From these results we conclude that the market is back in good health after a dip in the second half of 2008, and the volume of deals confirms other research which suggests that the global recession has had little or no impact on enterprise spend on telecoms and networks.