Gartner Says Worldwide IT Services Revenue Grew 6 Percent in 2006

STAMFORD, Conn., May 15, 2007 — Worldwide IT services revenue totaled $672.3 billion in 2006, a 6.4 percent 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 U.S. 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 U.S.-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 U.S.-based vendors,” said Ms. Hale.

More information on the IT services market is available in the Gartner report “Market Share: IT Services Rankings Worldwide, 2006.” The report is available on Gartner’s Web site at http://www.gartner.com/DisplayDocument?ref=g_search&id=505036&subref=simplesearch.

 

 

Contact:


Christy Pettey
Gartner
+1 408 468 8312
christy.pettey@gartner.com


About Gartner:
Gartner, Inc. (NYSE: IT) is the world's leading information technology research and advisory company. Gartner delivers the technology-related insight necessary for its clients to make the right decisions, every day. From CIOs and senior IT leaders in corporations and government agencies, to business leaders in high-tech and telecom enterprises and professional services firms, to technology investors, Gartner is the indispensable partner to 60,000 clients in 10,000 distinct organizations. Through the resources of Gartner Research, Gartner Consulting and Gartner Events, Gartner works with every client to research, analyze and interpret the business of IT within the context of their individual role. Founded in 1979, Gartner is headquartered in Stamford, Connecticut, U.S.A., and has 4,000 associates, including 1,200 research analysts and consultants in 80 countries. For more information, visit www.gartner.com.