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Friday, May 8, 2009

UK is IT services bright spot in 1Q09

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UK has become the strongest performing region for Logica, Capgemini and Atos Origin

 

Logica and Capgemini reported interim 1Q09 results with UK revenue growth of 7% and 4% respectively. Atos Origin's 1Q09 results (announced on 16 April) showed the UK growing at 8%. For all three companies the UK is now the strongest-performing region worldwide. This is strong evidence that the UK is proving more resilient to the downturn than other markets. Picking the sweet spots and avoiding costly dead ends is going to be crucial for IT services providers in 2009. In the more mature UK market, this equates to a relentless focus on outsourcing to help customers reduce costs, as well as a clear emphasis on the public sector, which continues to spend for now. Standalone consulting has all but dried up, but consulting as a complimentary component to an outsourcing sell is paying dividends.

 

Source: Ovum

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