Worldwide services revenue is expected to surpass $1.0 trillion mark in 2018, as per the market research firm IDC.
International Data Corporation (IDC) recently released some findings of its Worldwide Semiannual Services Tracker report, according to which, worldwide revenues for all IT services along with Business Services amounted to $475 billion in the 2017’s first half, thus showing an increase of 4.0% YoY.
Per the report, the spending on business services grew considerably faster as compared to the rest of the market (6.0% YoY). IT services also delivered more than two-thirds of the total service revenue in 1H17.
IDC tracker generates accurate forecasts about technology markets’ – size, vendor stake etc. from over 100 countries across the globe.
Amongst the 14 foundation markets, business process outsourcing was the largest with $92.9 billion revenues in 1H17. It was followed by systems integration with $62.1 billion revenue and then business consulting, IT outsourcing, software deployment and support services.
Per Lisa Nagamine, research manager with IDC’s Worldwide Semiannual Services Tracker, considered increasing demand for digital solutions with cloud-based services as a major driver of steady growth in the services market.
“As customers seek to execute on their 3rd Platform and digital transformation initiatives they will turn to services firms in increasing numbers to augment skills, gain help with strategic initiatives, and bring new kinds of business value while reducing risk and addressing critical security issues inherent in these new endeavors.” – said Rebecca Segal, group vice president Worldwide Services.
Hosting infrastructure services and business consulting were the fastest growing markets, recording a growth of 9.8% and 8.2% respectively.
The only foundation market to experience a decline in 1H17 was IT outsourcing.
While on the geographic front, the United States came out as the largest services market with revenues of $216.7 billion in 1H17, followed by Western Europe and Asia/Pacific (APEJ).