Are acquisitions good for outsourcing sector?

I wrote a story recently about what mergers and acquisitions in the IT sector mean to CIOs.

It talked about how large suppliers can take technologies to the next level.

The story mainly focused on IT manufacturers but what about in the outsourcing sector?

Three of the biggest IT acquisitions last year were Xerox buying ACS and Dell buying Perot Systems. And lets not forget HP bought EDS a couple of years ago.

Big companies renowned for selling hardware taking over service providers. Will this work or hasten the commoditisation of IT outsourcing? And is this a good or bad thing?

HP has certainly had its problems integrating EDS, but it is making money.

Dell has bold claims about its ambitions in services but what will it deliver?

What are people’s views on the Xerox acquisition of ACS?

How will these acquisitions leave the end user?

Will there be two tiers to the outsourcing industry?

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