"INTERVIEW-IBM sees powerful Europe services growth"
By Neil Winton, Science and Technology Correspondent
LONDON, June 9 (Reuters) - International Business Machines
Corp said on Tuesday that its revenues from services in
Europe will continue to boom in 1998, with growth well above 20
percent.
Hans Ulrich Maerki, general manager IBM Global Services
Europe, said in an interview that the market for services, as
more companies decided to contract out their information
technology requirements, was even healthier in Europe than in
the United States.
In the first quarter of 1998 IBM Europe's services revenues
rose 28 percent, compared with the same period of the previous
year.
"Whether it's 28 percent or whether it's a little less I
don't know but it certainly will be above 20 percent, that's for
sure," Maerki said of revenues for the whole of 1998.
IBM Global Services revenues were $25.7 billion worldwide in
1997. Europe accounted for about one third of that, according to
Maerki.
Services account for about 25 percent of IBM's total
revenue.
At an earlier press conference IBM said 90 percent of all
companies in Europe will have outsourced at least part of their
information technology needs by 2001.
The company estimated that the European outsourcing business
would be worth more than $40 billion by 2001.
A survey commissioned by IBM found that 85 percent of
European companies believe they have to invest in electronic
business technologies or face competitive disadvantage.
"IBM fundamentally believes that the Internet has the
capability to transform the way business is done," said Maerki,
commenting on the survey.
The survey questioned almost 2,000 information technology
and business directors of major European companies, attempting
to assess attitudes towards the adoption and potential of
electronic business tools.
Other findings of the survey included:
- Forty-four percent of business managers already believe
they are seeing a tangible return from electronic business
investments.
- Electronic business is seen as part of the strategic
direction for 68 percent of European companies.
- Eventually, 40 percent of business managers will cease to
trade with customers and suppliers if business is not conducted
electronically .
In the interview, Maerki said the services division of IBM
could account for maybe 40 percent of overall revenues, up from
about 25 percent now.
Maerki said although European information technology markets
were strong, the lack of qualified staff was a potential drag.
"Europe has to stop debating and take some action. In the
States they seem to be quicker and faster, establishing new
universities, distance learning. Europe will miss a big
opportunity if they don't put this right," Maerki said. |
