Shareholders' Letter

Market shares IT services in Switzerland* in %
57%
Others
*Estimate Swisscom
IT services market in Switzerland
Around 25% of IT services are outsourced in Switzerland, which is a very low share by European
standards. Outsourced IT services consist of project business as well as outsourcing services. In
Switzerland this market generated a revenue volume of some CHF 6.2 billion in 2010. Following a
sharp decline in 2009, positive growth was once more recorded in 2010 and Swisscom expects to
see the market grow by around 5% per year over the next few years.
15%
Swisscom IT Services
13%
IBM
6%
HP/EDS
5%
Accenture
4%
T-Systems
Development of third-revenue in CHF million
600
450
300
150
0
Including the services it delivers to other Group companies, Swisscom IT Services is the major
provider in the Swiss market with a share of around 15%, followed by IBM and HP/EDS. It comprises
the subsidiaries Swisscom IT Workplace Services Ltd, Comit Ltd, Resource Ltd and the majority
interest in Sourcag Ltd. Comit is the clear market leader in the segment for integrated systems for
banks. Together with the BPO (Business Process Outsourcing) expertise of Sourcag, a full range of
services for the financial sector are offered. With a market share of around 7%, Resource Ltd ranks
fourth in the SAP segment. Swisscom IT Services continued to expand in 2010, acquiring Panatronic
Schweiz Ltd, which operates in the area of printing and repair solutions. Following the takeover,
Panatronic Schweiz Ltd was renamed Swisscom IT Services Workplace Ltd and all skills relating to
IT workplaces were bundled into the new company. Swisscom IT Services Workplace Ltd is active
in a market that offers similar growth potential to that of business process outsourcing for banks
and SAP services. Swisscom IT Services continues to enjoy attractive growth prospects, despite sustained
high pressure from competitors and even greater volatility in the total contract volume on
the Swiss IT market due to fewer larger customer contracts. The business of Swisscom IT Services
is largely driven by the growing interest in on-demand services and the trend among customers
to award outsourcing contracts selectively and to several providers rather than purchasing all services
from a single provider. Thanks to customer proximity and a local presence, Swisscom IT Services
is well-positioned and offers a portfolio of services tailored to the needs of Swiss enterprises.
435
2008
435
2009
527
2010
Management Commentary 22 | 23
Environment, strategy and organisation