The Revenue for IT Services is down by 5.3 p.c Globally: GartnerBy Dipankar Das, Gaea News Network
Thursday, May 6, 2010
According to Gartner, the total revenue for IT services stands at $763 billion globally in 2009 which is a drop of 5.3% from 2008. The top 5 IT services providers in 2009 showed a decline in revenue. HP and Accenture reported the largest declines at 10.4 per cent and 11.8 per cent respectively.Other three global companies who showed decline in revenue in 2009 are IBM (6.6 per cent), CSC (6.5 per cent) and Fujitsu (0.4 per cent). The market share for top 20 vendors went up marginally from 37.3% in 2008 to 37.5% in 2009 compared to the smaller vendors.
Additionally, Gartner said that India based vendors grew only 3.6 per cent, in terms of U.S. dollars in 2009. The growth in the previous year was 15.4%. India-based vendors were affected early in the economic downturn.
This is due to the fact that they are dependent heavily on the financial sector and provide their service mostly through offshore application development, which are easy to be hit due to recession.
“In 2009, the top six India-based providers’ collective share of the global IT services market was 2.7 per cent, up slightly from their 2.5 per cent share in 2008. These providers collectively posted stronger growth in the U.S. market (6.5 per cent growth) than they did in Western Europe (2.7 per cent decline),” said Arup Roy, senior research analyst
The global recession across the industries also had a negative impact on the worldwide consulting market in 2009, and the revenue growth of many vendors were affected negatively, Gartner continued. The research firm further commented that business outcome-focused providers of consulting services with a good business relationships were sometimes successful to increase their market share. Suppliers who provide wide range of advisory services like how to migrate financial risks of an underperforming business operation are preferred the most, Gartner added.
Tags: Gartner, India, IT Consulting, IT Services, Offshore Development