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Updated: Global IT revenue returns to growth in 2010: Gartner

Updated: Global IT revenue returns to growth in 2010: Gartner

Australian IT services market grows 1.5 per cent to reach $22.8 billion

Worldwide spending on IT services totalled $US793 billion in 2010, a 3.1 per cent increase from 2009 revenue of $US769 billion, according to Gartner’s latest findings.

Locally, the Australian IT services market grew 1.5 per cent to reach $AU22.8 billion. Asia Pacific growth figures are accentuated by positive currency movements in 2010, Gartner said.

“There is little doubt that the effects of the global recession of 2008 and 2009 are still very much being felt, but the market for IT services bounced back in 2010 after a 5.1 per cent revenue decline in 2009,” Gartner research vice-president, Kathryn Hale, said.

Of the top five vendors, Fujitsu globally showed the fastest revenue growth.

Fujitsu, at 3.5 per cent annual growth in IT services and revenue of $24.1 billion, had a solid year in 2010 in U.S. dollar terms, Gartner said.

Meanwhile, IBM retained its No. 1 market share position in IT services in 2010, with a revenue increase of 2.6 per cent returning $56.4 billion in revenue and accounting for 7.1 per cent of the market.

With arguably the weakest revenue performance in the top five, Gartner said HP grew its IT services revenue less than $100 million, or 0.3 per cent, in 2010.

Rounding out the list, Accenture returned the strongest numbers within the top 10 in 2010, growing revenue $1.3 billion to $22.2 billion, a growth rate of 6.1 per cent.

Gartner noted CSC's growth in the past year was positive, but it was below market growth levels (at 0.6 per cent) due, in part, to an abnormally high level of delays in contract signings in both the federal and commercial sectors.

Software support showed the highest growth in 2010 at 6.6 per cent, while the government vertical showed the lowest growth rate (tied with the education sector at 1.6 per cent).

Big moves locally were deal announcements from IBM, Fujitsu and HP. Similar to global rankings, IBM, HP, CSC, Accenture and Fujitsu accounted for the top five providers, while a trio of local Australian companies Salmat, Telstra and UXC were the next top three.

"IBM's leadership was even bigger in Australia than worldwide, with 11 per cent of the market," Gartner vice-president and distinguished analyst, Rolf Jester, said. "It is worth noting the top five are all multinationals that dominate the market."

Eyeing the dominant local players, Salmat made the list, he said, given it is a major provider of business procurement services. Telstra, while a dominant telco, is a big provider of managed services for networking, datacentre and cloud services, while UXC is also very prominent in the services arena.

Jester said the IT services market is "changing profoundly" thanks to the advent of cloud computing. "Business is being turned upside down. Providers now have to make the up-front investments, build the service and asset base," Jester said. "The services space is completely different than what it was in the past. Providers now have to take to customers pre-defined, pre-built services and make the investments up-front. It is a change of business models."


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Tags HPGartnerit servicescscIBMaccentureFujitsu

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