This IDC study presents both a discrete and a bundled application management services (AMS) assessment for how the top 10 global AO service providers performed in 2011. Research reveals strong double-digit growth at 15% for the top 10 worldwide AO players. Large enterprises focused on application portfolio management strategies that drove greater consolidation, higher operational and cost efficiencies, with some level of modernization.

"Discrete AM services revenue reached an estimated $48.3 billion in 2011, with the top 10 providers holding an estimated 59% market share worldwide. Enterprise demand for AM services remained strong in the United States, with IDC estimating 15% growth in the U.S. market among the top 10," said Rona Shuchat, director of Application Development, Testing, and Management Services at IDC. "AO third-party services remain highly critical to enterprise customers as focus on increased operational efficiencies and cost containment continues, even as enterprises pursue targeted application migration and transformation strategies that include cloud initiatives."