Gartner Outlines Growth For IT Services Market

The IT services market is forecast to reach $762.3 billion by 2008, up from $608.1 billion in 2004, according to a report released by Gartner Dataquest. North American companies are expected to contribute $337.1 billion of that in 2008, up from $268.5 billion this year.

Gartner now expects the worldwide market to grow at a 6% compounded annual growth rate, as opposed to the previously stated 6.3% rate for its forecast from 2002 through 2007.

Asia-Pacific continues to lead other regions in growth, with a compounded annual growth rate of 9.7% from 2003 through 2008. The region is forecast to see IT services market revenue reach $43.9 billion in 2008, up from $31 billion this year as more companies adopt technology. China, by 2008, when the country is scheduled to host the Olympics, is expected to move ahead of South Korea to become the second largest IT services market in Asia-Pacific, behind Australia. Gartner suggests India is forecast to become the fourth largest market in 2004, taking a step ahead of Singapore.

Western Europe has slowed its IT adoption pace. The region is forecast to see IT services market revenue reach $221.1 billion in 2008, up from $192.8 billion this year. Economic conditions in Europe remain weak. Eastern Europe, however, is estimated to grow to $6.5 billion by 2008, up from $4.8 billion in 2004.

IT management and processes management remains the main source of growth, Gartner says. By 2008, these services are expected to exceed spending for systems-integration services. Spending for IT management and processes management is expected to reach $324.2 billion in 2008, up from $240.5 this year, compared with $283.4 billion and $232.1 billion, respectively, for system integration services. Gartner says product support services are expected to grow steadily as more companies require assistance with legacy platforms and migration to new systems.