Related Links

Web Seminars

May 5, 2011 – While still feeling the recession, which cause a 5.1 percent decline in 2009, the IT services market is up 3.1 percent to $793 billion, according to Gartner research. 

IBM retained its primary market share position in IT services in 2010, with a revenue increase of 2.6 percent, returning $56.4 billion in revenue and accounting for 7.1 percent of the market. IBM was followed by HP, Fujitsu, Accenture and CSC. Gartner reported that Accenture returned the strongest numbers within the top 10 in 2010, growing revenue $1.3 billion to $22.2 billion, a growth rate of 6.1 percent. Gartner also noted that CSC's growth in the past year was positive, but it was below market growth levels (at 0.6 percent).

“The 2010 results show IT investment has returned to growth, and the result is that the challenge of leveraging technology while managing risk is becoming more complex. Buyer choice is growing – from new engagement models using cloud services to delivering deeper business value via analytics,” says Dean Blackmore, senior research analyst at Gartner.

Blackmore pointed to growth in India, where vendors increased their market share from 4.8 percent in 2009 to 5.5 percent in 2010. "Although global sourcing makes the location of a provider's headquarters increasingly less relevant, we found that India-based vendors continue to grow above the market average," Blackmore said.

Software support showed the highest growth in 2010 at 6.6 percent. Weaker performances came from process management and hardware support, both of which grew approximately 1 percent less than Gartner’s prediction. Consulting and development/integration services came in slightly above Gartner’s expectations. This growth is attributed to organizations investing in projects they had put on hold. The report notes that growth occurred particularly in the second half of 2010.

The government vertical showed the lowest growth rate in 2010, tied with the education sector at 1.6 percent.

More information is available in the Gartner report "Market Share Analysis: IT Services, Worldwide, 2010."

Read Information Management coverage of the BI bounce back here. 

Valerie Valentine is senior editor for Information Management. You can follow her on Twitter at @va1va1entine or via email at valerie.valentine@sourcemedia.com.