STAMFORD, Conn., May 13, 2008 View All Press Releases

Gartner Says Worldwide IT Services Revenue Grew 11 Percent in 2007

Vendor Management Issues to be Discussed at Upcoming Gartner Outsourcing & Vendor Management Summit, May 19-21 in Washington D.C.

Worldwide IT services revenue totaled $748 billion in 2007, a 10.5 percent increase from 2006 revenue of $677 billion, according to Gartner, Inc.

“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 percent of the market. IBM and Accenture delivered strong growth rates, 12.2 percent and 19.7 percent, respectively, and were the only companies in the top six that experienced revenue growth rates above the overall market average.

Table 1
Worldwide IT Services Vendors by Revenue (Millions of U.S. Dollars)

Company	2007 Revenue	2007 Market Share (%)	2006 Revenue	2006 Market Share (%)	Growth (%)
IBM	54,148	7.2	48,247	7.1	12.2
EDS	22,130	3.0	21,396	3.2	3.4
Accenture	20,616	2.8	17,228	2.5	19.7
Fujitsu	18,620	2.5	17,918	2.6	3.9
HP	17,252	2.3	15,963	2.4	8.1
CSC	16,306	2.2	15,136	2.2	7.7
Others	598,953	80.0	541,169	79.9	10.7
Total Market	748,025	100.0	677,057	100.0	10.5

Source: Gartner (May 2008)

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 percent of end-user spending worldwide. While India-based vendors’ IT services revenue grew 38 percent in 2007, these companies earned only 4.1 percent of revenue tracked, and U.S.-based vendors dominated the IT services market with 55.4 percent 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/DisplayDocument?ref=g_search&id=666907&subref=simplesearch.

Gartner analysts will further discuss IT services and vendor management trends at the Gartner Outsourcing & Vendor Management Summit, taking place May 19-21 in Washington D.C. The Gartner Outsourcing & Vendor Management Summit is the only event that provides a comprehensive view of the entire outsourcing market — infrastructure, application and business process outsourcing, global delivery and the use of offshore providers, as well as issues and trends about new delivery models, such as software as a service. Many of the more than 50 content sessions will feature case studies and panel discussions presented by end users and industry professionals. For complete event details, please visit the Gartner Outsourcing & Vendor Management Summit Web site www.gartner.com/us/outsourcing.

Members of the media can register by contacting Christy Pettey at christy.pettey@gartner.com.

 

Contacts

• Christy Pettey
• Gartner
• +1 408 468 8318
• christy.pettey@gartner.com

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