📅 - A new report published this week by research organization IDC (idc.com) forecasts substantial growth over the next few years for the stable and growing xSP market, predicting that the market, worth $234 billion in 2002 will grow to almost $530 billion in 2007.
Growth for the xSP market, says IDC, will come at a compounded annual growth rate of more than 17 percent, outpacing some of the more mature services markets, despite challenges of reputation, leadership and management scandals, over-hype and a poor economy. According to the study, some xSPs reported growing customer interest in late 2002 and early 2003, following a retreat through 2001 and most of 2002. The increased interest, says IDC, has helped improve the overall tone of the xSP market. IDC says it expects xSPs will continue to play a larger part of service delivery, complementing traditional services and outsourcing markets through the forecast period. The company also believes market consolidation will continue, as economy of scale is a key force in xSP operation.
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