Western Europe Application Management Market Shares, 2015: The Top 10 European Providers
This study focuses on the 10 largest services vendors in the Western European application management market and how they fared against the trends in the market. It looks at the top 10 vendors' market shares and growth for 2015. The AM services market is highly concentrated, especially among the top 5 players. The top 5 players have a combined market share of approximately 46.3%. In dollar terms (current currency), the aggregated top 10 vendors saw a decline in revenues of 6.5% in 2015. In estimated constant currency, this translates to an increase of 8.4%. As a result of the merger of Sopra Steria, the top 10 AM vendor list was reshaped slightly in 2015, with the combined company taking eighth spot; this knocked EVRY out of the top 10, with both HPE and Wipro slipping one position (to 9th and 10th respectively). Capgemini climbed from number 6 in 2014 to number 5 in 2015, whereas CGI slipped from fifth to sixth.Cognizant saw the fastest estimated constant currency growth (20.4%), followed by Accenture (11.5%), but Atos, Capgemini, and CGI saw declines (-6.5%, -0.3%, and -7.4% respectively). The combined market share of the top 10 increased 2.5% from 2014. As AM engagements are highly offshored, tool-based, and automated, this puts pressure on prices. By 2017, we expect that a dominating share of new applications will be cloud-based, and management will be less of an issue. We anticipate that for close to one in five European enterprises more than 50% of annual spending on applications will be cloud-related by year-end 2017. Therefore there is increasing demand for hybrid outsourcing models combining traditional AM with cloud-based offerings."The focus should continue to be on the provision of end-to-end services to help customers modernize application portfolios and accelerate cloud adoption. While cloud is a major factor in influencing changes of supplier, however, improving the quality of service remains the top motivation to switch primary application outsourcer. Provisioning cost-effective services and solution delivery at the same time as enabling business innovation becomes critical to win," said Jennifer Thomson, research director, European Services, IDC.
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