Global services market slows: IDC

Updated forecast tips IT services market to still grow through to 2012

Services will still grow through the downturn, IDC says

Analyst IDC has cut its global services market forecast 1.5 per cent but still expects 5.2 per cent growth overall year on year in 2009.

Gard Little, research manager in IDC’s US-based worldwide services and emerging services opportunities division, said services growth will keep growing but more slowly than initially predicted through to 2012.

“The effects of the current economic crisis will reduce spending growth in the services market across the entire forecast period,” he said.

“Services spending will not contract as it did in the previous economic downturn, however.”

Different parts of the services market have been pegged to grow at different rates next year.

The business process outsourcing market will continue as the largest portion of the services market and the top driver of growth rate changes, Little said.

“Even with the decrease in growth rate for the hosted application management market, it still remains the fastest-growing market opportunity.”

For project-oriented services, growth rates will be lucky to tip three per cent next year but then increase through to 2012.

Growth rates in service offerings around support and training are also expected to remain below three per cent for the rest of the forecast period, with smaller spending gains predicted for hardware and software deployment and support.