Gartner Research

Forecast Analysis: IT Services, Worldwide, 1Q16 Update

Published: 28 March 2016

ID: G00292745

Analyst(s): Misako Sawai , Tina T. Tang, Patrick Sullivan, Gregor Petri , Arup Roy , Morgan Yeates, Cathy Tornbohm , Dean Blackmore , Helen Huntley, Allie Young, Christine Tenneson , Susan Tan, Susanne Matson , Mika Rajamaki, Gianluca Tramacere, Jacqueline Heng, Sandra Notardonato , Julie Short, Fred Ng, TJ Singh , Alex Soejarto

Summary

The worldwide IT services market will grow by 2.1% in U.S. dollars (3.8% in constant currency) in 2016. Opportunities in Brazil, China and South Korea are weakening. Consulting opportunities in Japan and ITO in India are strengthening.

Table Of Contents
  • Overview
  • Companion Documents

Forecast Data

Market Impact

  • Increases in the Consulting Market in Japan and the ITO market in India Are Offset by Decreases in Brazil, China and South Korea
  • The forecast for China has been reduced from a 2014-2019 CAGR of 7.2% in the 4Q15 forecast to a CAGR of 6.7% in this forecast. The primary drivers for this downgrade are:
  • The forecast for South Korea has been reduced from a 2014-2019 CAGR of 2.8% in the 4Q15 forecast to a CAGR of 1.5% in this forecast. The primary drivers for this downgrade are:
  • Consulting and Implementation: Cost Optimization Will Enable the Release of Funds for Digital Projects
  • ITO: Growth Driven by the Fast Pace of Cloud Infrastructure Adoption
  • BPO: Lines Between Services and Software to Become Further Blurred
  • Product Support Services

Assumptions

  • Consulting and Implementation
  • ITO
  • BPO
  • Product Support Services

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