Worldwide IT services revenue totaled $748 billion in 2007 (around Rs 3,141 crore), a 10.5 per cent increase from 2006 revenue of $677 billion, says a report by Gartner, an IT research and advisory firm.
The Indian domestic IT Services market grew 18 per cent in 2007 (in Indian Rupee terms) outperforming overall Asia/Pacific IT Services growth rate, says the report.
"While cost remains a key consideration for users in the outsourcing services market in India, operational efficiency and business agility is driving most of the IT Services engagements", said Arup Roy, senior research analyst, Gartner.
Across all IT services, IBM continued to be the worldwide market leader, with 7.2 per cent of the market. IBM and Accenture delivered strong growth rates, 12.2 per cent and 19.7 per cent, respectively, and were the only companies in the top six that experienced revenue growth rates above the overall market average.
"This strong growth, combined with strong first quarter results for market leaders, runs counter to the gloomy and widespread economic concerns arising in the United States," said Kathryn Hale, research vice president for Gartner's worldwide IT services group".
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The report states that vendors headquartered in India are ranked lower than the top 20, but they performed well as a group in 2007, with a growth rate of 38 per cent, more than three times the market average.
Tata Consultancy Services (TCS), ranked 28th, is the highest-ranked Indian provider.
"To build on their success in 2007, service providers should focus on selling services that will deliver visible return in 2008, either in cost, speed to market, or business impact.
They should also focus on growing sales in emerging markets that enjoy faster-growing economies and high growth rates in IT services," said Hale.