According to the latest research from IDC, the worldwide IT services market will increase to $489.8bn at a 6.7% compound annual growth rate (CAGR) over the full five-year period ending in 2007.
But the analyst warned that continuing economic and geopolitical concerns will hold back spending in the short term.
The study – Worldwide IT Services Forecast and Analysis, 2002-2007 – predicts four per cent growth in 2003, although it says much of this will occur in the second half of the year as the global market continues to be plagued by depressed economies and sluggish business profits.
‘The prolonged global economic slowdown has dramatically accelerated structural changes in the IT services marketplace,’ said Ned May, programme manager for worldwide services at IDC, in a statement. ‘The end result is that many vendors must now scramble to remake and rebrand themselves to address the market’s shifting priorities.’
The research blamed a lack of compelling emerging technologies to drive growth. It says most IT services remain focused on either optimising prior investments or reducing costs in operating current IT environments.
A new head of solutions, Aidan Brennan, has been appointed at KPMG UK
The second largest improvement in ‘significant’ levels of financial distress since the EU Referendum was in professional services, found research from Begbies Traynor
Just one half of UK practices have implemented a pricing structure around auto enrolment implementation and advice - with many suffering increased costs
Deloitte's north-west Europe foray; BDO, Smith & Williamson investment paths; Shelley Stock Hutter; and Wilkins Kennedy discussed by editor Kevin Reed on our Friday Afternoon Live broadcast