The IT services spend is expected to reach $US21 billion by 2005, according to research from analyst group Gartner Dataquest. The services market is said to be worth $12.1 billion this year, up $1.4 billion from 2000.
"Following 2002, increased confidence in the economy and business will present vendors with an opportunity to benefit from renewed demand among end users of IT services based on exploiting technology innovations," said Rolf Jester, Gartner's research director for Asia-Pacific IT services markets.
"Our local research shows that IT management services continue to do well despite economic uncertainty," Jester said. "From late 2002, we expect networking, security and telecommunications technology related services as well as e-business initiatives to be strong drivers of demand."
The Asia-Pacific services market continues to outpace other regions, according to Gartner Dataquest, with a growth rate double the world average, and nearly three times that of North America. Within that, Australia is the largest country and will remain so for some time, Gartner officials said.
Leading the services charge is development and integration followed closely by business process and transaction management.