Outsourcing is a fail

depressionWhile the services market grew in 2013, revenues failed to shine.

That’s according to a report from market research company IDC, which said the whole service market grew from 12.3 percent in 2012 to 13.4 percent last year.

But, as IBM and SAP results showed earlier this week, the gloss appears to have faded on the services industry.

Vendors, said IDC, attributed the small increase in income to cutting jobs, making people work harder for less money, and finind new places where labour is cheaper.

IT outsourcing appears to be on he wane, said IDC. It was the least profitable service line last year and in 2012.

But support and training services are still profitable, while the second and third most profitable lines were “business consulting” and IT project based services, said IDC.

Chad Huston, a senior analyst at IDC, said the lacklustre revenue growth hasn’t stopped what he described as “an upward trajectory”.

But, he added, that’s because vendors are cutting their costs.