IT services vendors battle it out

While outsourcing parts of the IT function to India and other offshore locations has proved attractive for some companies, many are still opting to stay with outsourcing providers in Europe and the US.

Recent figures from analyst house Gartner show that while India-based vendors’ IT services revenue grew a stunning 33.3% in 2006, these companies still only account for 3% of worldwide IT services revenue. In comparison, US-based vendors generate almost 60% of the total.

In that global market place, which grew 6.4% to $672.3 billion in 2006, IBM continued to lead the pack by a wide margin with 7.2% market share. But its growth rate is levelling out at a below par 2%.

In second place, with a market share of 3.2%, Texas-headquartered EDS is one of only two companies growing above the rate of the overall market. Its 2006 IT services revenues jumped 7.6%, according to Gartner. In contrast, two other companies in the ‘Big Six’ of IT services – Fujitsu Services and Computer Sciences Corp – struggled to show any growth at all.

In fact, Fujitsu is going to have to up its game if it is to defend its number three position from IT services specialist Accenture, which displayed impressive growth of almost 8%.


Pete Swabey

Pete Swabey

Pete was Editor of Information Age and head of technology research for Vitesse Media plc from 2005 to 2013, before moving on to be Senior Editor and then Editorial Director at The Economist Intelligence...

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