Application Services: pounded on multiple fronts

UK Application Services has not been the most comfortable of sectors to do business within over the last 12 months or so and it is not going to get any easier. Suppliers are faced with the need to invest up front to expand service lines, at the same time that a range of pressures (from the economy to the deflationary cloud model) are putting more and more pressure on revenues.

UK/European/US suppliers like IBM, HP, Capgemini, (CGI)Logica, Steria and Atos, are still under threat from offshore providers such as TCS and Infosys who are moving up the value chain and acquiring more UK market share despite facing growth challenges of their own. New entrants are emerging onto the market, from start-ups focused on high growth areas such as cloud, mobile, social and big data, to telco providers like NTT and T-Systems with their emerging application services units and natural cloud affinity. The threat from the new entrants should not be underestimated – established vendors are facing a wave of innovation from more start-ups than they can track. For example, a recruitment milk round held in “Silicon Roundabout” in London this weekend was packed with companies offering solutions and services around big data and social networking. Cloud and mobile were not a specific focus – because they are now base line assumptions. The market has indeed moved. Established suppliers cannot rely on their current market position to ensure ongoing success - leads are being neutralised, parts of the marketplace being reset.

Subscribers to TechMarketView ESASViews can read the Application Services Supplier Landscape 2012-2013 report here. If you would like to subscribe, Deborah Seth (dseth@techmarketview.com) will be happy to help. 

Posted by Angela Eager at '10:00' - Tagged: cloud   socialcare   mobility   bigdata   applications