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April 10, 2006

IDC: SOA Offers Tremendous Opportunity for Service Providers

According to a newly released IDC study, service-oriented architecture (SOA) will continue to have a profound impact on the overall services market, as implementation of this architecture often requires spending on a range of external services. These services include consulting and systems integration, and eventually outsourcing, application management, support and training. IDC forecasts that worldwide spending on SOA-based external services will reach $8.6 billion in 2006, experiencing a 138 percent increase from $3.6 billion in 2005. IDC projects that by 2010, global SOA-based services spending will reach $33.8 billion.

"There is no question that SOA will offer a tremendous opportunity for service vendors in the coming years," said Marianne Hedin, program manager for IDC's Worldwide Services and Services-Oriented Architecture: The Services Opportunity programs. "Service providers need to gain broader and deeper skills in the area of SOA, and position themselves to be actively involved with clients throughout their long SOA journey, which can take many years."

Systems integration will continue to represent the best market opportunity for service providers throughout the five-year forecast period. In addition, a recent IDC study of end-users reveals that transportation/distribution, utilities, manufacturing, services, and financials are the major adopters of SOA in the United States.

Regionally, the Americas will host the majority of external services spending on SOA, with the United States leading the market. EMEA represents the second largest region in terms of spending; however, the Asia/Pacific region is expected to experience a more rapid growth rate than both the Americas and EMEA, mainly due to its current small base level.

The study, "Worldwide SOA-Based Services 2006-2010 Forecast: Demand for Services Continues as Adoption Expands Across Industries and Geographies" (IDC #35072), examines the market dynamics, growth, and opportunities for standards-based SOA-driven services on a worldwide basis, providing a forecast for 2006-2010. The forecast and analysis covers the worldwide marketplace, individual regions, and services segments. The study also provides essential guidance for services vendors.

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