Mumbai:
Revenues from global IT services totaled $672.3 billion
in 2006, a 6.4 per cent increase from 2005 revenue of
$631.8 billion, according to Gartner, Inc.
"Core business process outsourcing (BPO) services
had a strong showing in 2006," said Kathryn Hale,
research vice president for Gartner''s worldwide IT services
group. "These process management services grew 8.6
percent worldwide, and several market leaders grew faster
than the overall market. Still, development and integration
services represent the backbone of IT services, accounting
for 30 percent of the market in 2006."
Across all IT services, IBM continued to be the worldwide
market leader (see Table 1), but its growth rate was below
the industry average. EDS and Accenture were the only
vendors in the top six that experienced revenue growth
rates above the overall market average. Market share for
13 of the top 20 vendors dropped in 2006.
Table
1
Worldwide IT services vendors by revenue (millions of US
dollars)
Company
|
2006
Revenue
|
2006
Market Share (%)
|
2005
Revenue
|
2005
Market Share (%)
|
Growth
(%)
|
IBM
|
48,247
|
7.2
|
47,407
|
7.5
|
1.8
|
EDS
|
21,268
|
3.2
|
19,757
|
3.1
|
7.6
|
Fujitsu
|
17,887
|
2.7
|
17,903
|
2.8
|
-0.1
|
Accenture
|
17,231
|
2.6
|
15,989
|
2.5
|
7.8
|
HP
|
16,442
|
2.4
|
16,104
|
2.5
|
2.1
|
CSC
|
14,682
|
2.2
|
14,611
|
2.3
|
0.5
|
Others
|
536,608
|
79.8
|
500,108
|
79.1
|
7.3
|
Total
Market
|
672,365
|
100.0
|
631,879
|
100.0
|
6.4
|
Source:
Gartner Dataquest (May 2007)
|
While
global sourcing makes the location of a provider''s headquarters
increasingly less relevant, Gartner tracks this information
for more than 400 vendors that collectively account for
more than 70 percent of end-user spending worldwide.
While
India-based vendors'' IT services revenue grew 33.3 percent
in 2006, these companies earned only 3 percent of revenue
tracked, while US-based vendors earned 57 percent of that
total. "Without significant acquisitions, it would
take India-based vendors many years to reach even half
the revenue of US-based vendors," said Hale.
|