IT Services and Business Services revenue rose 3.6 percent to $502 billion in the second half of 2017, said IDC.
Accenture, Cognizant, Capgemini, HCL Technologies, Infosys, TCS, Wipro, among others, are some of the leading IT service companies in the world. The IDC report noted that the Indian IT services and business services market achieved around 10 percent growth in 2017.
IT Services and Business Services revenue grew 4 percent to reach nearly $1 trillion in 2017. Research agency IDC expects the global IT Services and Business Services revenue will cross the $1 trillion mark in 2018.
Project-oriented markets grew 4.6 percent to $186 billion in H2 and 5 percent to $366 billion in 2017. Business consulting revenue grew by almost 7.8 percent in H2 and 8.2 percent in 2017 to $115 billion.
Services market growth
# United States 3.5 percent
# Australia 3.9 percent
# China around 10 percent
# India around 10 percent
# Western Europe 1 percent
# Latin America around 7 percent
# Central & Eastern Europe around 7 percent
# Middle East & Africa (MEA) around 7 percent
IT-related project services, namely custom application development (CAD), IT consulting (ITC), and systems integration (SI), make up more than two thirds of the project-oriented market. CAD, ITC, and SI combined grew by 3.7 percent to $251 billion in 2017.
IDC believes that the actual volume of IT project services grew even faster in 2017 but was offset somewhat by lower pricing.
“While automation and new cloud delivery models reduce overall price, new digital services will require clients to spend more time and resources to modernize existing IT environment,” Xiao-Fei Zhang, program director, Global Services Markets and Trends, IDC, said.
Outsourcing revenues grew 3.3 percent to $238 million in H2 2017. Application-related managed services revenues (hosted and on-premise application management) grew more than 6 percent in H2 and 5.8 percent in 2017.
Buyers have leveraged automation and cloud delivery to reduce cost to operate applications, for example, infusing artificial intelligence into application life-cycle activities to drive better predictive maintenance and application portfolio management.
Organizations are relying on external services providers to navigate complex technical environments and supply talent with new skills in cloud, analytics, machine learning, etc. in their continuing drive for digital transformation.
Digital transformation also requires organizations to standardize and modernize their existing application assets. IDC forecasts application outsourcing markets to continue outpacing other outsourcing markets in the coming years.