IT service market outpaces economic growth

race-atalanta-hippomenesBeancounters at IDC have added up some numbers and concluded that the worldwide market for IT services outpacing general economic growth.

Figures from IDC showed that year-on-year growth was four percent with the second half of the year totalling $502 billion, an increase of 3.6 percent.

IDC said it was all due to increased business confidence and the digital transformation trend as some of the factors driving spending.

Digitalisation is helping service providers offset the commoditisation of traditional offerings, and project-orientated revenues are reaping more that outsourcing, support and training, IDC said,

IDC’s Worldwide Semiannual Services Tracker, research manager Lisa Nagamine said: “The demand for a wide range of digital solutions continues to drive the steady growth in the services markets, but it is still cloud-related services that are having the biggest revenue impact.”

The complex nature of most digital transformation projects means customers have to turn to service providers, which is a positive development for those channel players that can plug the gaps, she said.

The US continues to dominate the global market for IT services and enjoyed the strongest growth but IDC is expecting Western Europe to come in with a decent 2018 as economies continue to improve and demand increases. Last year saw the region deliver 2.8 percent growth year on year thanks largely to sales generated in the second half.