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Mumbai
May 15, 2008
Worldwide IT services revenue totaled $748 billion in 2007, 10.5 percent
increase from 2006 revenue of $677 billion, according to Gartner.
“This strong growth, combined with strong first quarter results for market
leaders, runs counter to the gloomy and widespread economic concerns arising in
the US,” said Kathryn Hale, Research-VP, IT Services Group, Gartner. “Many
providers are successfully selling buyer value propositions that external
spending on IT services and solutions can help customers save money and be more
productive, even in a profoundly uncertain economic climate.”
The Indian domestic IT services market grew 18 percent in 2007 clearly
outperforming overall Asia-Pacific IT services growth rate. “While cost
remains a key consideration for users in the outsourcing services market in
India, operational efficiency and business agility is driving most of the IT
Services engagements,” said Arup Roy, Senior Research Analyst, Gartner.
Across all IT services, IBM continued to be the worldwide market leader (see
table 1), with 7.2 percent of the market. IBM and Accenture delivered strong
growth rates, 12.2 percent and 19.7 percent, respectively, and were the only
companies in the top six that experienced revenue growth rates above the overall
market average.
| Table
1 |
| Worldwide
IT services vendors by revenue (Million $) |
|
Company
|
2007 Revenue |
2007 Marketshare
(%) |
2006
Revenue |
2006
Marketshare (%) |
Growth
(%) |
| IBM |
54,148 |
7.2 |
48,247 |
7.1 |
12.2 |
| EDS |
22,130 |
3 |
21,396 |
3.2 |
3.4 |
| Accenture |
20,616 |
2.8 |
17,228 |
2.5 |
19.7 |
| Fujitsu |
18,620 |
2.5 |
17,918 |
2.6 |
3.9 |
| HP |
17,252 |
2.3 |
15,963 |
2.4 |
8.1 |
| CSC |
16,306 |
2.2 |
15,136 |
2.2 |
7.7 |
| Others |
598,953 |
80 |
541,169 |
79.9 |
10.7 |
| Total
market |
748,025 |
100 |
677,057 |
100 |
10.5 |
| Source:
Gartner |
While global sourcing makes the location of a provider's headquarters
increasingly less relevant, Gartner tracks this information for more than 360
vendors who collectively account for more than 70 percent of end-user spending
worldwide. While India-based vendors' IT services revenue grew 38 percent in
2007, these companies earned only 4.1 percent of revenue tracked, and US-based
vendors dominated the IT services market with 55.4 percent of that total.
“To build on their success in 2007, service providers should focus on
selling services that will deliver visible return in 2008, either in cost, speed
to market, or business impact,” said Hale. “They should also focus on
growing sales in emerging markets that enjoy faster-growing economies and high
growth rates in IT services,” he added. Page(s) 1
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