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IT services growth 'may slow'
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The IT services market is tipped to see reduced growth rates over the next five years, although some segments may benefit from the downturn, it has been suggested. According to the Western European IT Services Market 2007–2012, a 4Q Forecast Update, published by analyst IDC, the field is predicted to see 2.6 per cent growth in 2009, a reduction of two per cent from previous forecasts. In addition, the five-year average for growth in IT services has been revised from predictions of 4.8 per cent in August this year to 4.1 per cent. The analyst claimed that the IT services market was relatively untouched by the economic downturn in the first half of 2008 although the third quarter has seen an increase in uncertainly, with this expected to worsen in the final three months. However, Laura Converso, research manager at IDC European software and services, said this slowdown may not be experienced by the whole sector. She explained: "''We expect demand for IT services to suffer for at least the next 18 months and that project services … will be hit strongly, while some outsourcing and managed services may even benefit." Ms Converso predicted IT consulting, IT training and implementation projects will be among the first sectors to see growth slow, due to them having a greater exposure to "discretionary budgets". In the case of IT outsourcing, IDC said it expects growth to slow slightly, to 6.8 per cent in 2009, with businesses not expected to significantly shift the activities back in-house. Furthermore, the firm said the market could see more customers attempt to renegotiate their contract with their outsourcers. The research also revealed the UK, Spain and Ireland will be the countries which experience the most noticeable changes, although Spain is predicted to be the fastest growing IT services market in Western Europe. Recently, research from Gartner suggested master data management is a growing segment of the IT market and predicted it could grow by up to 25 per cent over the next two years as firms strive to reduce costs and increase efficiency. Azzurri is a leading provider of proactive, preventative support for business communications.  |
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