Worldwide IT services revenue was up by 8.2 per cent in 2008 at USD 806 billion from 2007 revenue of USD 745 billion, according to Gartner, Inc.
''Vendors had six to eight months of 'business as usual' in 2008 and then approximately four months encountering the beginning of the global economic downturn, featuring widespread cost restrictions and cost reductions,'' Gartner's worldwide IT services group research Vice-President Kathryn Hale said in a report released here today.
India-based IT vendors grew 12.9 per cent in US dollars in 2008, down from 39.8 per cent growth in 2007. They were impacted early by the economic downturn. This was expected, as these providers sell especially heavily to the financial sector and typically lead with offshore application development services, which are relatively easy to delay in tough times, the report said.
Across all IT services, IBM continued to be the worldwide market leader with 7.3 per cent share of the market. With its acquisition of EDS, HP moved into the No Two position, but with the difficulties of integrating the EDS business, its revenue grew only 1.9 per cent in 2008, considerably below the overall market growth rate.
While global sourcing makes the location of a provider's headquarters increasingly less relevant, Gartner tracked this information for more than 360 vendors, who collectively account for more than 70 per cent of end-user spending worldwide.
In the platform space, enterprise networks grew slightly below the market average at 6.8 per cent, but carrier networks showed very strong growth at 14.2 per cent.