C&L_December 2017 (1)
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Insight<br />
Worldwide<br />
IT Services<br />
Revenue<br />
Rises In<br />
<strong>2017</strong><br />
As per the report, an increase<br />
of 4.0% year-over-year has been<br />
recorded in 1H17<br />
By CIO&Leader<br />
W<br />
Worldwide<br />
revenues for IT Services and Business<br />
Services totaled USD 475 billion in the first<br />
half of <strong>2017</strong> (1H17), an increase of 4.0% year over<br />
year, according to the International Data Corporation<br />
(IDC) Worldwide Semiannual Services<br />
Tracker. IDC expects worldwide services revenues<br />
to surpass USD 1.0 trillion in 2018.<br />
While IT Services delivered more than two<br />
thirds of overall services revenue in 1H17, spending<br />
on Business Services grew faster than the<br />
overall market at 6.0% year over year. IT Services<br />
revenues were largely driven by spending on<br />
technology outsourcing and project-oriented<br />
services, such as application development and<br />
systems and network implementation. Business<br />
Services spending was led by business process<br />
outsourcing and business consulting services.<br />
The largest of the 14 foundation markets IDC<br />
uses to analyze end-user spending and vendor<br />
revenue was business process outsourcing with<br />
1H17 revenues of USD 92.9 billion. Systems integration<br />
was the second largest foundation market<br />
at USD 62.1 billion. Business consulting was the<br />
third largest foundation market in 1H17, followed<br />
by IT outsourcing and software deploy and support<br />
services. The fastest growing markets were<br />
hosting infrastructure services (9.8% growth) and<br />
business consulting (8.2% growth). IT outsourcing<br />
was the only foundation market to experience<br />
declining revenues in 1H17.<br />
On a geographic basis, the United States was<br />
the largest services market with revenues of USD<br />
216.7 billion in 1H17. Western Europe was the<br />
second largest region, followed by Asia/Pacific<br />
(excluding Japan)(APeJ). The markets with the<br />
fastest year-over-year growth in 1H17 were APeJ,<br />
Central and Eastern Europe (CEE), and the United<br />
States. Only two of the eight regions (Japan<br />
and the Middle East & Africa) recorded a decline<br />
in services revenue in 1H17.<br />
"Cloud-related services expected to surpass the<br />
USD 100 billion mark this year," said Lisa Nagamine,<br />
research manager with IDC's Worldwide<br />
Semiannual Services Tracker.<br />
<strong>December</strong> <strong>2017</strong> | CIO&LEADER<br />
27
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