IDC report: world IT services and business services market’s income surpassed $1 trillion

As reports IDC, world spending on IT– and business– services is constantly increasing. In the second half of 2018 market volume consisted $513,9 billion.

This approximately 4.5% higher in comparison to result of 2017 first half-year. Total spending on IT – and business services in 2018 exceeded symbolic $1 trillion borderline. Total annual growth consisted 4.3%.

“2018 surpassed the trillion-dollar mark, as we had forecasted at the end of 2017. We expect future growth in many geographies worldwide in coming years”, — said Lisa Nagamine, research manager, IDC’s Worldwide Semiannual Services Tracker.

Dynamic on this market also exceeds total world GDP growth. This in great measure reflects healthy environment with corporate IT- budgets in companies that are careful but have optimistic forecasts. Though IT-services ensured more than two thirds of revenue on the market, growth rates in the segment of business-services were higher.

IDC forecasts

Experts note that part of “project-orientated services”, including consulting, integration, applications development etc. still goes ahead of such market parts as outsourcing, support and education.

To be precise, business-consulting volume in the second half-year 2018 had 9,1% growth (reaching $ 63 billions) and totally in 2018 had 8,3 % increase ($123 billions). On the market of applications development incomes rose by 8,3 % ($24 billions) in the second half-year and by 7,5% ($46 billions) overall during the year. In 2017 there was a growth by 5,1%.

US remains largest regional market, as it managed to get $459 billions of surpass.

“More sustained U.S. economic growth, at least compared to other mature economies, allowed large government agencies and traditional businesses to spend more on new projects in recent years. Additionally, digital disruption and global competition have also stoked their digital fear – go digital or go broke.” – said Xiao-Fei Zhang, program director, Global Services Markets and Trends.

Western Europe became the second largest market with the growth by 3% till $266 billion. Much faster than in 2017 expanded Central and Eastern Europe market though its volume is still relatively small.

Main triggers of markets’ expansion were orders on applications development and their service. As experts say, digital transformation stimulates creation of new applications and update of older ones. In the current year surge of expenditures on the global IT- and business services market will continue.

Source: www.idc.com