Up to $37.5 billion worth of long-running IT contracts are set to expire in the next six months, creating a significant opportunity for IT providers that are quick to spot customer opportunities and understand their needs and motivations.

Ovum’s research examined over 20 business sectors and identified over 500 IT contracts due to expire before September 2010.

The biggest opportunities, according to Ovum research director Ian Charlesworth, will be in the financial services, energy and communications industries. These are followed by government and not-for-profit organisations, and the aerospace and defence sector.

Charlesworth advised IT providers to focus on contracts coming up for renewal, take the time to understand specific sector needs, and carefully target their approach.

"With hundreds of contracts ranging in value from $1m to $1bn potentially coming onto the market in the next few months, business development teams can quickly gain competitive advantage in a difficult market by knowing who is going to be spending and why," he said.