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IDC Forecasts Worldwide Spending on Network Consulting and Integration Services Will Reach $40 Billion by 2005

FRAMINGHAM, MA – JULY 10, 2001 – Despite a turbulent IT spending climate, the network consulting and integration services market will experience growth during the next several years. According to IDC, worldwide spending on these services will more than double from $18.2 billion in 2000 to $39.8 billion in 2005.


"The deployment of Internet, IP telephony, VPN, and mobile networking infrastructure technologies still leaves end users at all levels of the corporate structure demanding increased network access to applications and greater amounts of information," said Richard Dean, program director for IDC’s Infrastructure Integration and Support Service research. "This level of network accessibility is being leveraged to enable employees, partners, and suppliers to access internal corporate information and to allow users to engage in a whole new realm of ecommerce activities. These trends represent expanding opportunities for services vendors in a range of areas, including network planning, installation, access provisioning, project management, and information security services."

IDC believes information security services, in particular, represent a profitable opportunity for service providers and expects businesses to outsource a wide range of functions, including security consulting, auditing, policy planning, firewall implementation, testing, and managed security services.

The United States remains the largest consumer of network consulting and integration services. In 2000, spending by enterprise clients and from service providers totaled $10.9 billion, and by 2005 total expenditures are predicted to jump to $23.1 billion. Outside the United States, Asia/Pacific represents the fastest-growing opportunity. Supply-side revenues there will increase at a 2000-2005 compound annual growth rate (CAGR) of 31%, compared with a 17% CAGR in the worldwide market.

"Despite some current market uncertainties, we remain optimistic about the well-being of network consulting and integration services in all major regions of the world during the next four years. Cycles of IT spending will have IS managers turning their attention from building new infrastructure to gaining greater control over, optimizing, and enhancing existing networks," Dean said.

IDC recently published Network Consulting and Integration Services Worldwide Forecast and Analysis, 2000-2005 (IDC #B24837). This report analyzes factors that will impact the market’s growth in upcoming years and forecasts worldwide revenues through 2005 by region. The U.S. forecast is further segmented by industry and service activity.

To purchase this report, contact Jim Nagle at 1-800-343-4952, extension 4549, or at

About IDC

IDC is the foremost global market intelligence and advisory firm helping clients gain insight into technology and ebusiness trends to develop sound business strategies. Using a combination of rigorous primary research, in-depth analysis, and client interaction, IDC forecasts worldwide markets and trends to deliver dependable service and client advice. More than 700 analysts in 43 countries provide global research with local content. IDC's customers comprise the world’s leading IT suppliers, IT organizations, ebusiness companies and the financial community. Additional information can be found at

IDC is a division of IDG, the world's leading IT media, research and exposition company.

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