IT services market back to healthy growth by 2013

The global IT services market will grow 4.4 per cent over the next four years, according to  technology analyst firm Ovum.

The market will hit £463bn in 2015 and begin to see healthy growth rates of 4.5 per cent by 2013, following the negative impact of the recession.

This is a significant improvement on 2010, when the market grew less than 2 per cent.

Dr Alexander Simkin, Ovum's lead IT services market trends analyst said: "The market for IT services is gradually recovering from the economic downturn.

"So far, the turnaround has been patchy, with some geographies and service lines emerging faster than others."

"By 2013, we expect to see a return to pre-recession growth levels. However, the market is not out of the woods yet and there will be small dips along the way," he added.

Of all the IT services lines, business process outsourcing, infrastructure-led outsourcing and support services are forecast to see strongest growth.

Project services and application led outsourcing will also experience healthy growth.

"After a dismal 2008 and 2009, enterprise customers realise that they will have to make new application investments," said Dr Simkin.

"Vendors are making moves to rationalise and modernise applications in anticipation of pent-up demand for them."

According to the report, IBM is leading the global IT services market with HP and Fujitsu in second and third place.

All of the top five vendors experienced negative growth during 2010, while Indian-heritage firms largely improved their performance.

Japanese firms, such as NEC, Hitachi and Otsuka Shokai also made gains.