Denmark: IT Outsourcing and Utility Services 2003 Vendor Shares and 2004-2008 Forecast

The Danish outsourcing market grew 25% in 2003 and is estimated to grow another 28% in 2004. Total value reached 7.1 B DKK in 2003 and just above 9 M DKK in 2004. The mega deals of 2003 form a large part of the growth, but also the the number of smaller contracts on discrete areas such as application management and managed security services experienced a lot of growth.

"Acceptance of IT outsourcing is widespread" says research manager Mette Ahorlu, IDC. "We see outsourcing being accpted in medium sized and smaller companies as well. The smaller companies largely go for full scale outsourcing combining servers, networks and desktop management in one agreement. In the very large accounts it is especially application management that is on the agenda today after outsourcing of the infrastructure is completed in many companies. The high growth shows how the market has been professionalized. The offerings are streamlined, methodologies and procedures well documented, and both vendors and customers are confident and see the advantages in outsourcing"

IDC expects high growth rates to continue although at a more moderate level: 15% is expected for 2005 slowly declining to 9% in 2008.