The market of IT services fell: time to change strategy

The Gartner research company published data of another research according to which in 2009 the world market of IT services was reduced in volume by 5.3%. According to analysts, such unsuccessful year for the market never happened earlier. At the same time, recession caused serious damage to the largest world providers of IT services: their annual incomes decreased much from 11.8% at Accenture to small decline by 0.4% at Fujitsu.

The vice president for the IT researches Gartner Kathryn Hale noted that in 2009 the industry was before a near difficult tasks and elections which never faced earlier it, and players had to remake the plans drama. "Their priorities changed, and focus of business was displaced from aggressive sales and tactical increment of income to strategic management by profit level and efficiency and to cost reduction", - she said.

In addition to Accenture the profit of Hewlett-Packard significantly fell: for 10.4% from $38.6 billion in 2008 to $34.6 billion in 2009. In general the size of the market of IT services was reduced from $805 billion in 2008 to $763 billion in 2009 (-5.3%).

5 largest world IT and service vendors according to Gartner, profit in 2009:

1. IBM: $55 billion,-6.6% in comparison with 2008
2. Hewlett-Packard: $34.6 billion,-10.4%
3. Fujitsu: $23.3 billion,-0.4%
4. Accenture: $20.9 billion,-11.8%
5. CSC: $16 billion,-6.5%

At the same time, while the majority of the regional markets stagnates, by Gartner estimates the Indian service providers continue to show record growth rates. According to the Indian vendors, their profit in 2009 grew by 3.6%. Against the background of growth by 15.4% in 2008 this digit is not so big, but in comparison with results of the companies of Europe and the USA – is very essential.

As for 2010, according to forecasts of experts of analytical company the increasing number of service providers will be forced to review the strategy to meet the changing business needs of clients in the conditions of the recovered economy. The second in value provider of IT services of India the Infosys Technologies company stated the other day that it can refuse providing outsourcing services in Europe in connection with crisis in Greece. The profit of Infosys on operations in Europe is 23%.

"2010 will become for the industry year of reorganization. Last year most of players made certain adjustments and left the business at the profitable level. At the same time investors wait for growth of revenues, and to meet these expectations, vendors should take the corresponding steps in 2010", - add analytics of Gartner.