In terms of outsourcing, the traditional heavyweights are starting to feel the pinch as the market becomes increasingly more competitive. Despite IBM Global Services reporting revenue growth of 3 percent for the full year last year, revenue posting for the last quarter fell 5 percent compared with the same period the previous year.

US outsourcing advisory firm TPI found the six largest outsourcing providers (Accenture, HP, CSC, ACS, EDS and IBM) are losing the mega outsourcing deals and report that 2006 could be the first year that commercial IT outsourcing revenue declines.