Worldwide IT Outsourcing Market Grew 7.8

Worldwide IT outsourcing (ITO) revenue totalled $246.6 billion in 2011, a 7.8 per cent increase from 2010 revenue of $228.7 billion, according to Gartner, Inc.

Indian-based IT services providers and providers rooted in cloud-based services delivered the highest growth rates in 2011.

"Revenue cannibalisation resulting from client adoption of industrialised, and often cloud-based, services risks muting the growth opportunities for the ITO providers that are heavily weighted in infrastructure outsourcing," said Bryan Britz, research director at Gartner. "Strategies will vary as clients are likely to pursue hybrid cloud strategies requiring providers to deliver some asset-light and some asset-heavy offerings — which will result in varying growth trajectories among competitors over the next several years."

IBM maintained the No. 1 position, as its revenue grew 7.8 per cent, and its revenue accounted for 10.9 per cent of ITO revenue (see Table 1). IBM was the No. 1 ranked provider in all regions. HP grew below the market growth rate, but retained the No. 2 worldwide market share position with 6.1 per cent market share. Fujitsu, helped by currency gains, overtook CSC for the No. 3 worldwide market share position in 2011.

STAMFORD, Conn., May 21, 2012 —

 

Worldwide Top 5 ITO Providers by Revenue Market Share, 2011 (Millions of Dollars)

 

2011 2010 Vendor 2011 Revenue 2011 Market Share (%) Revenue Growth 2010-2011 (%)
Rank Rank
1 1 IBM 26,923 10.9 7.8
2 2 HP 15,107 6.1 2
3 4 Fujitsu 10,981 4.5 10.3
4 3 CSC 10,374 4.2 0
5 5 Accenture 6, 530 2.6 18.2
    Others 176,640 71.7 8.3
    Total Market 246,555 100 7.8
Source: Gartner (May 2012)