In terms of single-provider IT-services outsourcing deals (> $200 million), IBM Global Services took the largest share to the bank in 2007. It bagged 11 such deals and raked in a total of $7.41 billion. As we were going to press, there was news of Vodafone Essar of India having chosen IBM Global Services for IT operations for an undisclosed amount, though market speculations peg this as a multimillion-dollar deal.
The company’s biggest win of last year was its $1.4 billion, seven-year ITO contract renewal with AstraZeneca, the Anglo-Swedish pharma company. Under the terms of the contract, IBM Global Services will provide IT-infrastructure services such as server and storage hosting, service desks, PC management, and network and communications services. The contract was first signed between the two in Feb. ’01 for $1.7 billion for seven years.
The other big wins for IBM Global Services came from Allianz, Banque Cantonale Vaudoise, Circuit City Stores, Gruppo Monte Paschi Siena, IDEA Cellular, InfoPrint Solutions, Royal and Sun Alliance, Scotiabank, Somerset County Council, and Sparkassen-Finanzgrippe.
Though at $6 billion, AT&T comes in at second position in terms of the value of the deals bagged, it has done so through only two deals, with IBM ($5 billion) and General Motors ($1 billion).
AT&T was also a part of the $20 billion Networx Enterprise multivendor telecom deal by the U.S. government.
Meanwhile, General Dynamics signed only one deal above $200 million last year, and took home a cool $5 billion from the U.S. Department of Justice for infrastructure management, maintenance and support, and network integration. The company also bagged a multivendor deal worth $227 million with the U.S. Department of Homeland Security’s U.S. Citizen and Immigration Service.
At $4.97 billion, EDS came in at the fourth position as a provider with the maximum value of single-vendor IT deals (> $200 million each). In terms of numbers, EDS won eight such deals, the largest one with KarstadtQuelle, the German retailer, for $1 billion.
AlmavivA’s $1.7 billion domestic IT-infrastructure outsourcing deal with the Italian Ministry for Agriculture, Food and Forestry Policies, was the dark horse in 2007. This deal was the largest ever IT-services contract in the Italian central government sector. The deal marked the emergence of AlmavivA from the ashes of Finsiel, Telecom Italia’s troubled IT-services company, which was acquired by Italian entrepreneur Alberto Tripi’s CRM services business COS Group in 2005. The two operations were re-branded under the name AlmavivA last year, and pooled together 15,000 employees with 2006 sales of $952 million, according to Datamonitor.
Together the top 10 providers bagged single-vendor deals worth a total of $36.28 billion. This is almost 78 percent of the total share of all deals (> $200 million) signed last year. In terms of the number of deals, these 10 providers clinched 42 deals out of total 64 single-vendor deals in 2007.
| Top 10 Providers by Value |
| Provider |
Value ($ bn) |
No. of deals |
| IBM Global Services |
7.41 |
11 |
| AT&T |
6.00 |
2 |
| General Dynamics |
5.00 |
1 |
| EDS |
4.97 |
8 |
| Capita |
3.79 |
4 |
| SAIC |
2.24 |
5 |
| CSC |
2.01 |
5 |
| AlmavivA |
1.70 |
1 |
| BT |
1.60 |
2 |
| Fujitsu Services |
1.56 |
2 |
| Parameters: 2007 IT-services deals; integrated IT and BPO deals; >$200 million; excludes multivendor deals Source: Global Services |
