Table Of Contentmom
INPUT
Research
Bulletin
A Publication from INPUT’S Business integration Programme - Europe
Vol. V, No. 2 February 1994
European Project Services Market
Valued $41
at billion
In 1993, input’s European Systems a variety of information systems products
Integration Programme focused specifically and services. For a project to qualify as a
on the systems integration market. systems integration project, the client must
appoint a single prime contractor responsible
In 1994, we are expanding the scope of this for overall project management and
programme to cover the whole of the project responsible for the delivery of the complete
services market and renaming it the information system to the agreed schedule
—
Business Integration Programme Europe and price.
The projects services market: The project services market includes a wider
range of seiwices. Indeed it includes all
• Covers a wider range of services than project-related services excluding products
systems integi’ation purchased as off-the-shelf software products
to be installed by the client or products and
• Is eight times larger than the systems services purchased as part of an outsourcing
market
integi'ation contract.
• Will be strongly driven by the adoption of Examples of services within the scope of the
software products project services market are:
• Is being targeted by the equipment • Management consultancy as part of a
vendors. business re-engineering project
Wider Range of Services • Strategic IS consulting services
Systems integration projects provide • Technical consulting
complete solutions to information system
requirements through the custom selection of • Implementation support
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INPUT Research Bulletin
• Bespoke software development
Exhibit 1
i
Project Services and Systems
• Education and training
Integration Markets, Europe
Equipment and software product revenues
are also included where these are purchased CAGR
as an integral part of an information systems (%)
^
1993
project. In those instances where software 19
Systems
products and equipment are purchased 11.6 1998
Integration
separately, these elements are not included
in the project services market covered by the
European Business Integration programme.
8
Project
Revenues for the services listed above are Services
included within the systems integration
market where these services are supplied
0 10 20 30 40 50 60
within the context of a systems integration Market Size ($ Billion)
project.
However many project services are the external market. Indeed this same trend
purchased outside this context, often as has served to reduce the growth elsewhere in
individual consulting assignments or support the professional services market with in-
services. Historically, individual professional house IT departments often no longer in a
services have tended to be purchased on a position to recruit large numbers of
time and materials basis. temporary development staff.
While the systems integration market This overall trend is expected to continue.
includes combinations of services bundled Similarly the trend to fixed price rather than
into an overall fixed price contract, the time and materials is extending itself to
project services market also includes smaller projects.
standalone services and services purchased
on a time and materials basis. Exhibit 2 provides a breakdown of the project
services market for France, Germany, and
Eight Times Larger than Systems the United Kingdom.
Integration Market
The project services market in each of these
Exhibit 1 contrasts the size and growth of countries is currently depressed by their
the European systems integration and economic circumstances. The market in
project services markets. France is the most adversely affected with
users endeavoring to reduce their IT
The growth in the systems integration expenditure, and little sign of overall
market has been considerably higher than economic recovery. However new
that in the overall project services market in technologies, such as client/server that offer
recent years, as major project expenditure users the prospect of reducing their overall
has shifted from in-house developments to
2 © 1994 by INPUT. Reproduction prohibited.
INPUT Research
Bulletin
IT expenditure while improving the value of
Exhibit 2
to their business, provide some
jl^IT
Project Services by Country
encouragement for growth in the project
services market.
CAGR
Driven by the Adoption of Software (%)
m
Products 1
1
France
Exhibit 3 provides a breakdown of the
European project services market by
component.
8
Germany
The European systems integration market
is
showing a shift from large bespoke
development projects to projects based on
client/server architecture and oriented
U.K.
around the assembly of standard software
This trend is mirrored in the overall project 0 5 10 15
services market where the proportion of Market Size ($ Billion)
revenues derived from software products
is
forecast to grow substantially over the next
^
five years. Exhibit 3
Project Services by Component, Europe
Increased use of software products and
kernels will help to meet users’ needs for
CAGR
flexibility and immediacy of implementation.
(%)
The main
implications of these trends for Professional
vendors is their need to focus skills: Services
• Around the leading application software
products in their chosen sectors
Equipment
On
• the technical skills necessary to
integrate these products into distributed,
multi-vendor environments.
20
Software
Strongly Targeted by the Equipment Products
Vendors
i7
0 10 20 30 40
Market Value
Exhibit 4 lists the leading project services ($ Billion)
vendors in Europe.
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1994 by INPUT. Reproduction prohibited. 3
INPUT Research
Bulletin
Overall the list of leading vendors in the
Exhibit 4
project services market is very similar to
Leading Project Services
that for the systems integration market. —
Vendors Europe, 1992
However large project specialists such as
European
EDS
Andersen Consulting and receive lower Vendor Project Services
Revenues
rankings in the project services market.
M)
($
On the other hand Siemens-Nixdorf and IBM 2,300
Olivetti, who had yet to estabhsh themselves Cap Gemini Sogeti 1,800
in the systems integration market in 1992, Siemens Nixdorf 1,100
achieve higher rankings in the project Digital 1,100
services market. Andersen Consulting 950
700
Olivetti
As in the systems integration market, the
Serna Group 550
equipment vendors are steadily increasing
Finsiel 550
their presence in the project services market.
ICL 450
EDS 400
Bull 400
Unisys 300
—
This Research Bulletin is issued as part of INPUT’S Business Integration Programme Europe
Ifyou have questions or comments on this bulletin, please call your local INPUT organization
or Peter Lines at INPUT, 17 Hill Street, London W1X7B, (+44) 71 493 9335.
4 © 1994 by INPUT. Reproduction prohibited.
