14 May 2008
Worldwide revenue generated by the provision of IT services climbed to $748 billion (£385 billion) in 2007, an impressive 10.5 per cent increase on the 2006 figure of $677 billion (£349 billion), Gartner has reported.
According to the analyst, the high growth rate and the healthy first quarter results posted by IT services market leaders suggests that the climate of economic turmoil has so far had little effect on the market.
Kathryn Hale, research vice president for global IT services at Gartner, said: "This strong growth, combined with strong first quarter results for market leaders, runs counter to the gloomy and widespread economic concerns arising in the United States.
"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."
Gartner advised that service providers will need to focus on selling services that will deliver visible returns in 2008 – in terms of cost, speed to market or business impact – if they are to continue on from their success in 2007.
According to a new report from Datamonitor, the largest global IT services deals in February 2008 focused heavily on infrastructure management deals, as well as applications and business process outsourcing. The analyst noted that there was an increased preference for shorter contracts, compared with the same month last year.
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