Worldwide IT services revenue totalled $748-billion in 2007, a 10,5% increase from 2006 revenue of $677-billion.
"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," says Kathryn Hale, research vice-president of Gartner's worldwide IT services group.
"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."
Across all IT services, IBM continued to be the worldwide market leader, with 7,2% of the market. IBM and Accenture delivered strong growth rates, 12,2% and 19,7% respectively, and were the only companies in the top six that experienced revenue growth rates above the overall market average.
While global sourcing makes the location of a provider¹s headquarters increasingly less relevant, Gartner tracks this information for more than 360 vendors who collectively account for more than 70% of end-user spending worldwide.
While India-based vendors' IT services revenue grew 38% in 2007, these companies earned only 4,1% of revenue tracked, and US-based vendors dominated the IT services market with 55,4% 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," says Hale. "They should also focus on growing sales in emerging markets that enjoy faster-growing economies and high growth rates in IT services."