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The IT services providers industry is set to bounce back after a tough 2009 with IT outsourcing expected to increase, according to industry analyst Gartner.
Worldwide IT services revenue fell by 5.3 per cent last year, down to $763 billion (Ј504.8 billion) from $805 billion in 2008, but the prudency shown by providers during this time has set them up for a quick recovery in 2010.
Kathryn Hale, research vice president for Gartner’s worldwide IT services group, admitted the previous year had been a testing time for the industry as the economic downturn forced many to adjust their expectations and approach.
But she said better things could now be expected for the year ahead as things the economy returned to stability.
“The discipline exercised in 2009 leaves the industry profitable and relatively nimble,” said Ms. Hale.
“But investors will expect to see revenue growth and managing those expectations, while maintaining margins will be more challenging than the comparatively unambiguous goals of 2009, a year in which expectations were modest.”
Previous research from industry analyst IDC suggested the European market for IT services would record a growth rate of 2.2 per cent in 2011.