IT services market growth to continue: Gartner

Weakening economy won't dampen growth

Businesses' expenditure on IT services will continue to grow throughout this year, in spite of the uncertain economic outlook, according to Gartner.

The analyst firm predictsd a solid 9.5% rise in global spending this year, taking the total to US$819 billion (NZ$1,100 billion).

The first half of the year had shown mixed results, however. Kathryn Hale, research vice president at Gartner, says that while there was much optimism at the start of the year, bolstered by decent results from the top providers, several IT services firms had since indicated that "some outsourcing contract signings are being delayed and some projects are being placed on hold".

Outsourcing of IT and processes is the market's highest growth area, and will represent 42% of services spending this year, Gartner predicts. Business process outsourcing has become particularly attractive to those firms taking big steps to curb costs, it says.

Consulting, and development and integration, also continued to exhibit steady growth, Gartner says, spurred on by the drive to cut costs and improve the return on investment on projects. These segments are due to grow 10.1% in the year to US$327 billion, Gartner says.

However, companies claiming a strong return on investment from their projects were hard to come by, says Hale. One problem was "the inability of providers to provide compelling value statements about the services they provide, whether in offerings or delivery", she says.

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