New IDC Research Highlights Ten Vendors Vying for Supremacy in the Worldwide and U.S. Application Management Services Market

FRAMINGHAM, Mass., August 5, 2013 – Newly published International Data Corporation (IDC) research shows that the worldwide and U.S. discrete application management (AM) services market reached nearly $50 billion in 2012. The top 10 vendors in the market, as measured by total discrete AM revenues, accounted for nearly 63% of the total market in 2012, compared to controlling an estimated 59% the year before.

"IDC has witnessed increased rivalry in the application management services market," said Pete Marston, Research Manager, Application Development, Testing, and Management Services at IDC. "Much of the AM services sold are through discrete contracts, however, there's also a sizable portion of AM services sold through bundled IS outsourcing deals."

This research shows that as rivalry intensified in 2012, IDC witnessed a market leader change with Accenture obtaining the number one spot for discrete AM services. While IBM was edged to second place for discrete AM revenues, it continued to hold its number one spot for consolidated AM revenues, which includes both discrete AM revenues and AM revenues bundled as part of Information System (IS) outsourcing deals, also referred to as data center outsourcing.

Additional key findings include:

Several of the top ten vendors for discrete AM revenues demonstrated slower growth for 2012 compared to 2011, but Cognizant and Accenture stood out from the pack with 21.6% and 13.2% year-over-year growth respectively.

Worldwide suppliers of discrete AM services staked larger positions in the U.S., claiming an estimated 71% share of the total U.S. market.

The top 10 vendors pushed the consolidated AM market higher to $41.3 billion in 2012, compared with an estimated $37 billion a year ago.

This IDC study, Worldwide and U.S. Application Management Services 2012 Vendor Shares: Top 10 Vendors (IDC #242298) provides suppliers and customers with greater visibility into the world of AO by maintaining an IDC focus on discrete AM revenue and continuing to analyze application management bundled within IS outsourcing engagements. This study presents an evaluation of the top 10 (discrete) AM services vendors, both worldwide and in the United States, and ranks them for these two geographic regions according to estimated 2012 discrete AM revenue.

About IDC

International Data Corporation (IDC) is the premier global provider of market intelligence, advisory services, and events for the information technology, telecommunications, and consumer technology markets. IDC helps IT professionals, business executives, and the investment community, to make fact-based decisions on technology purchases and business strategy. More than 1,000 IDC analysts provide global, regional, and local expertise on technology and industry opportunities and trends in over 110 countries. For more than 49 years, IDC has provided strategic insights to help our clients achieve their key business objectives. IDC is a subsidiary of IDG, the world's leading technology media, research, and events company. You can learn more about IDC by visiting www.idc.com.