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Gartner Says Worldwide IT Services Revenue Grew 11 Per Cent in 2007
Vendor Management Issues to be Discussed at Upcoming Gartner Outsourcing & IT Services Summit, 2-4 June 2008 in London
"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," said Kathryn Hale, research vice president for 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 (see Table 1), with 7.2 per cent of the market. IBM and Accenture delivered strong growth rates, 12.2 per cent and 19.7 per cent, 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 provider's headquarters increasingly less relevant, Gartner tracks this information for more than 360 vendors who collectively account for more than 70 per cent of end-user spending worldwide. While India-based vendors' IT services revenue grew 38 per cent in 2007, these companies earned only 4.1 per cent of revenue tracked, and U.S.-based vendors dominated the IT services market with 55.4 per cent 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," said Ms. Hale. "They should also focus on growing sales in emerging markets that enjoy faster-growing economies and high growth rates in IT services."
Additional information is available in the Gartner report "Market Share: IT Services, Worldwide Rankings, 2007." The report is available on Gartner's Web site at http://www.gartner.com/....
Gartner analysts will further discuss IT services trends at the Gartner Outsourcing & IT Services Summit, taking place on 2-4 June in London. Over three days, the Summit will gather 20 leading Gartner analysts to help delegates build outsourcing management competencies and processes and master effective multisourcing strategies. They will also provide best practices for finding the best partners, negotiating effective contracts and structuring for change and innovation. The Summit features more than 70 sessions among them, keynotes, workshops, real-life case studies and interactive panels. For complete event details, please visit the Gartner Outsourcing & Vendor Management Summit Web site www.europe.gartner.com/....
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