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Denise Villamil
AFSMI
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dvillamil@afsmi.com

Oracle Tops List of Leading Performers in Technology Services Industry Report

Quarterly analysis shows the technology services industry to be holding its own in the face of steadily declining overall economic conditions

SAN DIEGO, January 28, 2009 – Fourth-quarter 2008 results of The Service 50, a quarterly aggregation of the financial performance of fifty of the most influential technology solution providers, were announced today by the Technology Professional Services Association (TPSA).

The quarterly report ranks and analyzes technology services providers by overall size, services revenues and a number of other measures. This quarter’s “Service Stars” - the top companies based on a index of financial performance measures - was led by Oracle for the second consecutive quarter, followed by Infosys, TCS, Cisco, Symantec, HCL, BMC, Cognizant, Fiserv and Sybase.  

Now in its fourth year, the research provides the undisputed definitive analysis of the technology services industry.

"Given today's economy, it’s more important than ever for technology companies to understand how the technology services sector is performing, making this probably our most hotly anticipated quarterly analysis to date," said Thomas Lah, executive director, TPSA.  

Lah acknowledged that going into the Q408 analysis, "the pervailing assumption was that the overall drag of the poor economy would surely begin to show itself in the financial performance of The Service 50, but this assumption proved to be wrong in several key dimensions."

Research results include:

  1. Overall Service 50 revenues held steady.
  2. Operating profits for Q408  improved compared to both Q308 and Q407.
  3. Services margins for hardware and software companies remained relatively flat and product margins came under pressure in Q408.
  4. Hardware companies experienced the most margin pressure and services revenues were flat, but operating incomes were improved.
  5. Software companies saw increased services revenues and strongly improved operating incomes.
  6. Pure services companies demonstrated markedly improved operating incomes.

About TPSA
The Technology Professional Services Association (TPSA) is the first and only organization for executives who create, produce, deliver, manage, measure, and optimize technology services in the world’s leading corporations. For more information visit www.tpsaonline.com.

 

 

 

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