BPO set for growth
This is according to the latest research from technology analyst firm, Ovum, and is the result of a combination of “pent-up demand and a slowly improving economy.”
Ovum says the 2011 spending growth is below pre-recession levels but there will be strong pre-recessionary growth of over 4.5% by 2013. The global IT services market will be worth $756 billion by 2015. In 2010, growth never reached 2%, notes Ovum.
In terms of service line demand, business process outsourcing (BPO) will experience the strongest growth from 2010 to 2015, according to Ovum.
This is followed by infrastructure-led outsourcing and support services. Ovum also adds that application outsourcing is set to see strong growth as businesses decide they can no longer put upgrades off.
According to Computing.co.uk, Dr Alexander Simkin, Ovum's lead IT services market trends analyst asserts: “The market for IT services is gradually recovering from the economic downturn. So far, the turnaround has been patchy, with some geographies and service lines emerging faster than others.”
According to the report, IBM is leading the global IT services market with HP and Fujitsu in second and third place.
All of the top five vendors experienced negative growth during 2010, while Indian-heritage firms largely improved their performance.
Japanese firms, such as NEC, Hitachi and Otsuka Shokai also made gains.
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