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IT services market to return to healthy growth in 2013

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14 June 2011 | Published by Ovum

Press release

IT services market to return to healthy growth in 2013

  • Global market to grow by 4.4 per cent during next four years
  • IBM ranked number one IT services provider
  • Business process outsourcing strongest service line

Pent-up demand and a slowly improving economy is driving recovery in the global IT services market, which will grow at a compound annual growth rate (CAGR) of 4.4 per cent during the next four years, to hit $756 billion, predicts Ovum.

In a new forecast*, the independent technology analyst finds that although 2011 growth is still not back to pre-recessionary levels, the market will return to healthy growth of over 4.5 per cent in 2013, when the recovery will begin in earnest. This is a significant increase on growth in 2010, which did not even reach two per cent.

Meanwhile, Ovum has also released a new market share analysis** of the top 50 global IT service vendors, to paint a picture of the companies that are dominating the space. IBM continued to be the world’s number one provider of IT services in 2010, followed by HP and Fujitsu.

There was no change in place in 2010 for the top five vendors, when compared to 2009, and all experienced negative growth last year. Most of the vendors that improved their market share and their ranking were Indian-heritage firms such as Infosys, Wipro and TCS, which moved one place to be ranked 13th. Japanese firms such as NEC, Hitachi and Otsuka Shokai also made gains.

Dr Alexander Simkin, Ovum’s lead IT services market trends analyst, commented: “The market for IT services is gradually recovering from the economic downturn. So far, the turnaround has been patchy, with some geographies and service lines emerging faster than others. By 2013, we expect to see a return to pre-recessionary levels of growth. However, the market is not out of the woods yet and there will be small regional and segmental dips along the way.”

Of the all the IT service lines, business process outsourcing will experience the strongest growth from 2010 to 2015, followed by infrastructure-led outsourcing and support services. Dr Simkin commented: “The growth in infrastructure-led outsourcing and support services reflects the fact that it is still a fundamentally sound market in the majority of territories.”

Meanwhile, Ovum predicts that the project services and application-led outsourcing market will also experience healthy growth. Dr Simkin concluded: “After a dismal 2008 and 2009, enterprise customers realise that they can no longer hold back on making new application investments. Vendors have stepped up their efforts around applications rationalisation and modernisation in anticipation of pent-up demand for those services.”

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NOTES TO EDITORS

*Global Market Trends 2010: IT Services Forecasts

**Global Market Trends 2010: IT Services Rankings and Market Shares

To arrange an interview or for further details regarding this release, please contact Kelly Livesey in the Ovum press office on +44 (0)161 238 4081, or email kelly.livesey@ovum.com.

ABOUT OVUM

Ovum provides clients with independent and objective analysis that enables them to make better business and technology decisions. Our research draws upon over 400,000 interviews a year with business and technology, telecoms and sourcing decision-makers, giving Ovum and our clients unparalleled insight not only into business requirements but also the technology that organisations must support. Ovum is part of the Informa Group.

 

- Ends -

Notes to editors
Further Information

More information is available from the Datamonitor Group Media Team. Please contact +44 1483 825 664 or kirstin.stocker@informa.com.

About Ovum

Ovum provides clients with independent and objective analysis that enables them to make better business and technology decisions. Our research draws upon over 400,000 interviews a year with business and technology, telecoms and sourcing decision-makers, giving Ovum and our clients unparalleled insight not only into business requirements but also the technology that organisations must support.

About Datamonitor

Datamonitor is a leading provider of online database and analysis services for key industry sectors. We help our clients, 5000 of the world's leading companies, to address complex strategic issues. Through our proprietary databases and wealth of expertise, we provide clients with unbiased expert analysis and in-depth forecasts for seven industry sectors: Automotive, Consumer Packaged Goods, Energy, Financial Services, Pharmaceuticals and Healthcare, Technology, Transport and Logistics.