Industry news

 

    IT service market to boom, says analyst

    Thu 24-Jul-2008

    One market analyst is predicting that the worldwide IT service market is on track to enjoy strong growth this year.

    Gartner forecasts the sector will enjoy 9.5 per cent growth in 2008 as revenues rise to $819 billion (£420 billion).

    Kathryn Hale, research vice president for the firm, said first quarter results for the top nine providers returned above expected results, which has led to an optimistic prediction for the rest of the year.

    "Although we expect continued strong growth in IT services, there are two causes for concern. First, the rate of innovation in providing new service offerings is sporadic innovation in delivery is not growing as fast as hoped," she added.

    The analyst revealed earlier in the week it believes the semiconductor outsourcing services market is set to boom over the next four years.

    It forecasts the sector will enjoy growth of 10.8 per cent this year compared to 2007.
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