According to research firm Gartner, IndianÂ IT companiesÂ collectively grew 18.9% inÂ 2010, which is well above the market average and about seven times faster than the growth of IBM (2.6%)- the world leader in IT services. The market share of Indian vendors has increased from 4.8% (in 2009) to 5.5% last year.
Worldwide end-user spending on IT services totaled $793MÂ in 2010, marking a 3.1% increase from 2009 revenue of $769B. The market for IT services bounced back last year after a 5.1% revenue decline in 2009.
IBM retained its lead in market share, with a revenue increase of 2.6% returning $56.4B in revenue and accounting for 7.1% of the market. Hewlett Packard (HP) had the weakest growth in the top five, at just 0.3%. Accenture registered the fastest growth at 6.1%. The five leading IT services players are (according to both market share and revenues) IBM, HP, Fujitsu, Accenture, and CSC.
Software support showed the highest growth in 2010 at 6.6%. Weaker performances came from process management and hardware support, both of which grew approximately 1%Â less than expected growth. Consulting and development/integration services came in slightly above expectations as organizations that had put investments on hold began investing again in 2010, particularly in the second half of the year.
It was a bad year for the government and education verticals, as as governments around the world implemented budget cuts aimed at reducing deficits. Both these sectors grew at a snailâ€™s pace of 1.6%.
IT Services include consulting, systems integration (SI) services, IT outsourcing, managed services, hosting, training, support and maintenance services.