IDC Study Finds U.S. Demand for IT Services Continues to Vary Across 16 Vertical Markets

FRAMINGHAM, MA – JANUARY 29, 2003 – The U.S. IT services sector continues to grow, but at a slower pace than previous years. According to a new IDC report, the current and future market opportunities for IT consulting, systems integration, IS outsourcing, and IT training services continue to vary by vertical market.


"Government and education markets are currently more stable, with healthy growth across the forecast years compared with other vertical industries, which are more vulnerable to the cycle of the economy," said Anne Lu, analyst for the Services Vertical View at IDC.

Among the key trends presented in this report are the following:

Enterprise spending on IT consulting continues to be adversely affected by the current freeze on capital spending. The largest vertical markets for IT consulting reside in banking and discrete manufacturing, thanks to the healthy flow of initial public offerings and merger and acquisition (M&A) activity, which provide stable money to fund sizable IT budgets.

The environment for systems integration services providers remains challenging in the communication and media and the wholesale markets. No significant rebound in spending on systems integration is expected until 2004.

Discrete manufacturing and services are the largest IT training and education markets due to their continuous investment into software that can enable them to serve their customers in a more efficient and effective manner.

The government and education markets are currently more stable, with healthy growth across the forecast years compared with other vertical industries, which are more vulnerable to the cycle of the economy.

Among the many recommendations provided in this study, IDC believes that IT Services vendors targeting vertical markets need to combine IT outsourcing and business processing outsourcing, increase the accountability through strong financial performance, and demonstrate both strategic benefits and financial benefits through clear return on investment (ROI).

The purpose of this document, U.S. Services 4Q02 Forecast by Vertical Market, 2002-2006 (IDC #28649), is to identify and quantify the impact of recent trends and events influencing the services opportunity among 16 vertical markets through the third quarter of 2002 and their impact on the five-year forecast.

Particular attention is paid to the near-term years: 2002, 2003, and 2004. The report presents a fourth-quarter update to the five-year forecast for the U.S. vertical markets.

To purchase this document, call IDC's sales hotline at 508-988-7988 or email

For additional information about IDC’s Services Vertical Views program, please contact Virginia Lehr at 508-935-4188 or

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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