The US computer hardware market generated total revenues of $60.
6 billion in 2008, representing a compound annual growth rate (CAGR) of 6.8% for the period spanning 2004-2008. - The US networking equipment market generated total revenues of $23 billion in 2008, representing a compound annual growth rate (CAGR) of 6.9% for the period spanning 2004-2008. - The US PC market generated total revenues of $50.6 billion in 2008, representing a compound annual growth rate (CAGR) of 3.8% for the period spanning 2004-2008. The European computer hardware market generated total revenues of $70.4 billion in 2008, representing a compound annual growth rate (CAGR) of 3% for the period spanning 20042008. - The European networking equipment market generated total revenues of $52.2 billion in 2008, representing a compound annual growth rate (CAGR) of 5.1% for the period spanning 2004-2008. - The European PC market generated total revenues of $75.9 billion in 2008, representing a compound annual growth rate (CAGR) of 9.1% for the period spanning 2004-2008.
The Asia-Pacific computer hardware market generated total revenues of $50.2 billion in 2008, representing a compound annual growth rate (CAGR) of 1.1% for the period spanning 2004-2008. The Asia-Pacific networking equipment market generated total revenues of $20.6 billion in 2008, representing a compound annual growth rate (CAGR) of 4.7% for the period spanning 2004-2008. The Asia-Pacific PC market generated total revenues of $52.2 billion in 2008, representing a compound annual growth rate (CAGR) of 7.1% for the period spanning 2004-2008.
The infrastructure market, which includes all the software to build, run and manage an enterprise, is the largest segment in terms of revenue and the fastestgrowing through the 2014. The hottest software segments through 2014 include 1. virtualization, 2. security, 3. data integration/data quality
4. and business intelligence. The applications market, which includes personal productivity and packaged enterprise applications, has some of the fastest-growth segments. 1. Web conferencing, 2. team collaboration 3. and enterprise content management are forecast to have double-digit compound annual growth rates (CAGR), in the face of growing competition surrounding social networking and content June 2011 Gartner Report-We have identified a strong correlation between GDP growth and enterprise software spending growth, where software tends to grow 4 to 6 percent above GDP in normal market conditions. However, we do have concerns about the rising cost of commodities, including oil, and its impact on certain regional and country economies."
Emerging countries such as Poland, India, China and Brazil, which were less affected by the latest economic downturn than the U.S. and Europe, are expected to continue to invest heavily in enterprise software initiatives in the next few years as they build the IT infrastructures necessary to do business on a global basis Gartner believes that oil prices and the outcome of the federal budget deliberations are the largest threats to economic stability in North America. However, current indicators are positive with consumer and business spending on both equipment and software holding up. With the extension of federal tax cuts including the tax relief on capital equipment depreciation due to expire at the end of the year, additional stimulus revenue could further boost enterprise spending on technology and other capital goods. In Western Europe, enterprise software spending could see slightly stronger growth in the latter half of 2011, but the headwinds are getting stronger. The pace of growth in Europe is slowing, mostly because of recent currency appreciation, fiscal tightening, higher commodity prices and concerns about debt in countries such as Greece, Ireland, Portugal and Spain," said Fabrizio Biscotti, research director at Gartner. "The result of these additional constraints on growth will exacerbate some country growth trends in the region. However, countries on the upside of this trend are Denmark, Finland, Germany, Norway, and Sweden. Among the largest emerging markets, China and Brazil will see the most pronounced slowing trends, while growth rates in India and Russia will be less affected."
Japan & Western Europe- Modest Growth Asia Pacific-Double of Market Growth November 2009 Gartner-Within the region, the volatile economy is impacting the application software segment more than the infrastructure software segment. Despite the recent slowdown in growth, Asia Pacific still has a positive outlook over the five-year forecast period from 2008 through to 2013, achieving a compound annual growth rate (CAGR) of 10.8 percent, the highest of any region worldwide. For the next five years, China, India and Vietnam will continue to register the highest CAGRs (14.6 percent, 12.4 percent and 10.7 percent respectively). Mature markets Australia and Singapore will also have attractive CAGRs, of 9.5 percent and 9.4 percent respectively. China and India continue to benefit from a large domestic customer base and government stimulus packages, as well as relatively low market penetration. Australia and Singapores revenue is supported by a consistent maintenance revenue stream and a strong vendor channel and service infrastructure, as well as positive expectations for end-user software budget increases in 2010
China will continue to lead software demand in the region, with a 12.2 percent growth rate in 2009 and 14.5 percent growth in 2010. Although China's high dependency on exports is significantly impacting its economic growth in 2009, the government's stimulus package cushions the negativity. Australia is the next-largest market with a 5.4 percent growth rate in 2009 and 8.2 percent growth in 2010. Although some mature countries are experiencing a notable recession, Australia's economic growth in 2009 will experience only slight negative growth before picking up in 2010. Australia also has the advantage of a well-established IT infrastructure and a welldeveloped sales and service infrastructure. Despite experiencing the slowest growth in 2009 among the region's four largest markets at only two percent, South Korea is still the third-largest software market in Asia Pacific. South Korea is a well-developed and IT-savvy market and revenue will come from its large installed base, specifically from maintenance and upgrades. Notable software growth improvement at 6.5 percent is expected for South Korea in 2010. India is the fourth-largest market in the region with expected growth of 10.1 percent in 2009 and 11.8 percent growth in 2010. While its economy is also impacted by the economic downturn, India has the advantage of being less dependent on exports than China. India's largely untapped market, combined with a strong pool of IT skills, is expected to uphold local software demand. Asia Pacific will continue to have significant positive potential for future IT investment because of its relatively low penetration and is supported by a large base of domestic uses. With the economic slowdown, end-user organizations will prioritize IT as a way to cut costs and enhance their organizational efficiency and competitiveness, which is critical in the current environment, said Dharmasthira.
The BRIC Computer Hardware market grew by 15.3% between 2004 and 2007 to reach a value of $62 billion. In 2013, the market is forecast to have a value of $114.2 billion, an increase of 7.9% from 2008. Russian was the fastest growing country with a CAGR of 19.5% over the 2004-2007 period.
"One of things that is helping [to drive enterprise software growth] is that some of the largest software vendors like Microsoft and Oracle are doing a very good job at selling much deeper and more comprehensively into the enterprise," Eid said Robust consumer spending on mobile PCs will drive hardware spending in 2010. Enterprise hardware spending will grow again in 2010, but it will remain below its 2008 level through 2014. Spending on storage will enjoy the fastest growth in terms of enterprise spending as the volume of enterprise data that needs to be stored continues to increase. Near-term spending on servers will be concentrated on lower-end servers; longerterm, server spending will be curtailed by virtualization, consolidation and, potentially, cloud computing
Difference between Management, Technology and IT Consulting
Management consulting growth platform is responsible for the development and delivery of our strategic, operational, functional, industry, process and change consulting capabilities, working closely with the professionals in our operating groups and the other growth platforms. Our management consulting professionals help large, complex organizations design and execute changes to their business and operating models, either for one or more critical business units or across the entire organization. This growth platform comprises seven service lines: Customer Relationship Management. The professionals in our Customer Relationship Management ("CRM") service line help companies acquire, develop and retain more profitable customer relationships. We offer a full range of innovative capabilities that address every aspect of CRM, including marketing, direct and indirect sales, customer service, field support and customer contact operations. These capabilities include rigorous approaches to improving the return on marketing investment, methods for building insight into customers' purchase habits and
service preferences, tailoring offers and service treatment based upon that insight, and unique methods of optimizing the quality, cost and revenue impact of sales and service operations. We use these skills to help our clients accelerate growth, improve marketing and sales productivity and reduce customer-care coststhus increasing the value of their customer relationships and enhancing the economic value of their brands. Finance & Performance Management. The professionals in our Finance & Performance Management service line work with our clients' finance and business-unit executives to develop financial transaction processing, corporate finance and business performance reporting capabilities. Among the services we provide are strategic consulting on the design and structure of the finance function and the establishment of shared service centers. Our finance capability services also address revenue cycle management, billing, credit and collection effectiveness, electronic invoicing and settlement, tax processing, treasury operations, trading operations, lending and debt recovery. Our performance management services address shareholder value targeting, scorecard and performance metrics development, performance reporting solutions and applied business analytics to improve profitability. Our professionals work with finance executives to develop and implement solutions that help them align their companies' investments with their business objectives and establish security relating to the exchange of information to reporting institutions. Process & Innovation Performance. The Process & Innovation Performance service line helps clients achieve measurable, lasting improvements in operational performance, innovation performance and growth. Taking an end-to-end, process-based approach, professionals in this service line help clients address key business challenges such as complexity management, lean manufacturing and operations, process innovation, strategic cost reduction and growth through innovation. Risk Management. The professionals in our Risk Management service line, which we established in February 2010, work with clients to develop risk management capabilities to help protect and grow the economic value of their organizations. Our Risk Management services help our clients align business strategy and risk capabilities to evaluate market options and drive profitable growth; develop a risk-conscious culture across their organizations; adapt to industry and geographic regulations to drive positive business impact; and develop capabilities to collect, model and analyze business information for better risk-based decision making.
Strategy. Our Strategy professionals combine their strategy and operations experience to help clients turn insights into results at both the enterprise and business-unit level. With deep skills and capabilities in corporate strategy, corporate restructuring, growth and innovation strategies, mergers and acquisitions, merger integration, organization strategy, pricing strategy and profitability assessment, we help clients developand executepragmatic ways to transform organizations and drive sustained high performance. Table of Contents Supply Chain Management. The professionals in our Supply Chain Management service line work with clients across a broad range of industries to develop and implement supply chain and operations strategies that enable profitable growth in new and existing markets. Our professionals combine global industry expertise and skills in supply chain strategy, sourcing and procurement, supply chain planning, manufacturing and design, fulfillment and service management to help organizations achieve high performance. We work with clients to align operating models to support business strategies; optimize global operations; support profitable product launches; and enhance the skills and capabilities of the supply chain workforce. Talent & Organization Performance. The professionals in our Talent & Organization Performance service line work with clients on a wide range of talent management, workforce and organizational issues to deliver improved business and operational results. Our integrated approach and end-to-end capabilities include services and solutions in organization and change management, human resources administration, learning, knowledge management, organizational performance management, talent management and overall transformation of key workforces. We help companies and governments improve the efficiency and effectiveness of their human resources services while lowering associated costs; deliver improvements in employee and workforce performance; and transform organizations through project-, program- and enterpriselevel change management.
Systems Integration Consulting
Our key systems integration consulting services and solutions include: Enterprise Solutions and Enterprise Resource Planning. We implement a variety of application softwareincluding SAP and Oracle, among
othersto streamline business processes, systems and information and help organizations access, manage and exploit data to make more-informed business decisions. Our skilled professionals provide planning, implementation, change management and upgrade solutions across the primary application software product suites that underpin all major business functions. Industry and Functional Solutions. We provide clients with robust, large-scale industry and functional solutions based on proprietary reusable assets, aggregated into industry solutions, such as the Accenture Communications Solutions suite for communications providers and the Accenture Revenue Solution suite for tax offices, as well as solutions for major industry-specific requirements. We also provide specialized services and solutions to support specific business functions, including finance and planning, customer relationship management, supply chain and human resource management. Information Management Services. We provide services to help organizations manage the full range of their information needs to improve data quality, enhance decision-making capabilities and meet compliance requirements. Our services include business intelligence as well as unstructured content management and portals; data management and data quality solutions; and information architecture development. Our information management assets complement and are embedded in our industry and functional solutions. Cloud Computing. We help client CIOs and business leaders use cloud computing to enable improvement in IT efficiency and agility. Accenture guides organizations through the integration of cloud-based services to deliver short-term cost savings and longer-term enhancements to their application portfolios and IT infrastructures. Custom Solutions. With deep skills and expertise in both J2EE (Java-based) and .NET technology architectures, we work with clients to develop custom solutions that meet unique business needs, often using open-source technology products and platforms.
Software as a Service (SaaS). We help clients implement SaaS solutions to meet their business needs with the added benefits of increasing flexibility and reducing total cost of ownership. Our services include requirements definition, design, configuration, testing, change management, data conversion and integration. Mobility Solutions. We help clients develop solutions that give their workforces access to key enterprise applicationsincluding online trading and wealth management, supply chain management, telematics, radio frequency identification, field-force enablement and customer relationship managementthrough mobile devices and/or the Internet. These solutions enable clients to improve efficiency, lower costs, enhance differentiation and ensure compliance. Microsoft Solutions. Together with our alliance partner Microsoft and our Avanade subsidiary, we develop and deliver cost-efficient, innovative business solutions based on Microsoft Windows Server and other .NET technologies, leveraging our deep industry expertise and practical applications of leading-edge technologies.
Technology Consulting
Our key technology consulting services and solutions include: IT Strategy & Transformation. We help client CEOs and CIOs link IT investments to business results and help manage those investments to ensure that planned business impact is achieved. We also help CIOs transform how IT works, both internally and with business partners, so that IT is "run like a business" to deliver high performance. Enterprise Architecture. We provide solutions that integrate IT with business capabilities to provide clients with seamless operating environments. Our solutions provide a reference point for measuring both IT investment and results, creating the delivery roadmap that defines how IT systems need to change to drive future business growth and higher performance.
Infrastructure Consulting. We provide solutions to help clients optimize their IT infrastructures while reducing costs. From data center, operations engineering and enterprise network design and implementation to desktop solutions, our services enable clients to rationalize, standardize, optimize, secure and transform their IT infrastructures for improved performance of mission-critical business processes, applications and end users. IT Security Consulting. Our solutions help clients forge secure business environments that enable them to grow their capabilities and become more agile in response to changing market forces and evolving threatsall without incurring additional complexity. Working with us, our clients are better able to secure data and applications, protect identities, address threats and vulnerabilities, and meet stringent compliance demands while reducing costs and improving efficiency. Application Portfolio Optimization and Renewal. We specialize in defining and executing strategies that transform our clients' application portfolios into rationalized, flexible, cost-efficient and reliable assets. Our services and solutions help clients define and implement innovative approaches to extending the useful life of legacy applications at a significantly reduced cost compared with replacement, rapidly turning around non-performing systems and migrating 10 Table of Contents custom solutions written in vintage languages or hosted on retiring platforms to more modern, sustainable solutions. Our capabilities combine deeply skilled professionals with a suite of renewal tools that accelerate and automate the portfolio optimization process. Digital Solutions. We provide clients with solutions that move more of their business and internal operations online to improve productivity, manage costs and drive revenue growth. We help clients define their online strategies, improve customer experiences and identify areas for website
optimization. We also help them incorporate next-generation digital technologysuch as wikis, blogs, crowd-sourcing and mash-ups, among othersto create significant opportunities for collaboration and sharing with their employees, suppliers and customers. Research & Development. Through Accenture Technology Labsour research and development organizationwe use new and emerging technologies to develop business solutions that we believe will be the drivers of our clients' growth and enable them to be first to market with unique capabilities. Key areas of research and development for clients include information insight, collaboration, biometrics, virtualized infrastructures, predictive maintenance, Web 2.0, cloud computing and sensor technologies, among others. Microsoft Solutions. Together with our alliance partner Microsoft and our Avanade subsidiary, we design and provide cost-efficient, innovative business solutions based on Microsoft Windows Server and other .NET technologies, leveraging our deep industry expertise and practical applications of leading-edge technologies.
IT Outsourcing
Our approach to IT outsourcing goes beyond traditional cost-cutting measures to help clients improve the total performance of application and infrastructure development and maintenance. We provide the full range of application outsourcing and infrastructure outsourcing services and solutions: Application Outsourcing. We provide a wide array of application outsourcing services under flexible arrangements, managing custom or packaged software applicationsincluding enterprise-wide applications such as SAP and Oracle over their complete development and maintenance life-cycles. Our scope of services ranges from standardized, discrete application outsourcing servicesincluding application testing, application management of enterprise-wide software programs and capacity servicesto largescale application enhancement and development for
individual or multiple applications, or an entire portfolio of applications. We can also take endto-end responsibility for all of a client's IT function, including infrastructure and operations, leveraging our shared-services delivery groups and our application and infrastructure transformation consulting expertise to deliver significant gains in client productivity, providing services from a variety of locations, including lower-cost locations. Infrastructure Outsourcing. We provide ongoing management of clients' IT infrastructure capabilities and functions, with expertise in six service areas: service desk; workplace services; data-center services; network services; security services; and IT spend management. We provide discrete skills (i.e., capacity services) as well as fully managed services. Our services offer clients a more cost-effective, secure and responsive infrastructure that can be scaled and adapted to their business needs. We provide these services either through our own centers and capabilities or in conjunction with our strategic subcontractors.
Business Process Outsourcing
Our business process outsourcing growth platform provides business processes that help clients transform their businesses, achieve higher levels of performance and results, and/or reduce costs. Through our BPO services, we manage specific business processes or functions for clients, providing solutions that are more efficient and cost-effective than if the functions were provided in-house while also providing business insight to support executive decision-making. We offer clients across all industries a variety of BPO services for specific business functions and/or processes, including finance and accounting, human resources, learning and procurement, among others. We also offer specialized BPO services tailored to clients in specific industries. For instance, we offer life insurers policy administration and management services, including high-volume transaction-processing capabilities. We help market-leading health
payers improve service performance in core operational functions, coupled with accompanying cost reductions. In addition, through our Navitaire subsidiary, we offer airlines a range of transaction-processing services, including Internet reservations, airport check-in, revenue management and accounting, crew scheduling and management, and disruption recovery. We also provide a broad spectrum of custom BPO outsourcing services designed to address the unique needs of client organizations. Custom services can include an entire process or discrete activities within or across multiple business functions.
The factors that are driving organizations towards procurement outsourcing, are: The tough economic climate Rise of global sourcing in PO Maturing PO supplier landscape
HRO and FAO have matured, PO continues to be in a pioneer phase. In fact, at present, PO market size is less than half of FAO or HRO markets.
term IT covers a number of related disciplines and areas, semiconductor design and production (also covered in the profile of the electronics sector), hardware manufacture (mainframes, servers, PCs, and mobile devices), to software, data storage, backup and retrieval, networking, and, of course, the internet
Each of the major sub-areas in IT is itself capable of being divided into its component parts. Storage, for example, breaks down into disk drives, tape drives, and optical drives, and into attached storage and networked storage.
PCs break down into utility-business desktop PCs, high-end work stations,
and extreme gaming PCs for games enthusiaststhe computer and console games industry has already produced blockbusters that outsell top releases from Hollywood.
An example of a technology trend would be virtualization. This refers to the ability of large servers to be subdivided into a number of virtual machines, which can be either virtual PCs or virtual servers. Virtualization carries with it a number of benefits, including stopping what, at one stage, looked like an endless proliferation of servers inside companies. One large server can now be split into a number of virtual servers, enabling the organization to reduce the number of boxes it has to manage. Server virtualization should not be confused with another powerful trend
