Telecom takes top spot in IT services market

EDS is no longer number one, says IDC

The acquisition of system integrators Gen-i and Computerland is paying huge dividends for Telecom, which has taken over from EDS as the number one IT services company in New Zealand.

Figures released by research company IDC put Telecom ahead of EDS despite the latter growing by around 30% for the 2004 calendar year.

In the first half of 2005, Telecom achieved a 17.2% market share in the services sector and IDC country manager Graeme Muller says the company outstripped not only the market itself but also Telecom, Gen-i and Computerland’s growth rates prior to the merger.

“Combined, Telecom grew its share by 19.9% in 2004 over and above the market share of Telecom Advanced Solutions, Gen-i and Computerland.”

The first half of 2005 saw continued growth for the incumbent, albeit at a lesser level — it achieved a 12% compound annual growth rate.

Muller says while the IT services sector growth is welcome, he expects it to taper off somewhat in the next year.

“Having said that, the area we do see high growth potential in is converged services, like VoIP and VPN, and that’s where Telecom is well placed to take the lead.”

Muller says this is the first time since at least 1999 that EDS has not lead the IT services market.

The other top IT services vendors besides Telecom and EDS are IBM, Datacom and Unisys.

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