Industry news

IT service revenue up 10%

The worldwide revenue of IT services grew by more than one tenth (10.5 per cent) in 2007, one analyst has said.

Gartner revealed yesterday the total global revenue of IT services reached $748 billion (£385 billion) last year, showing a $71 billion increase from the 2006 figure of $677 billion.

Kathryn Hale, research vice president for the analyst's worldwide IT services group, said the strong growth combined with sturdy first quarter results for market leaders run "counter to the gloomy and widespread economic concerns arising in the United States".

"Many providers are successfully selling buyer value propositions that external spending on IT services and solutions can help customers save money and be more productive, even in a profoundly uncertain economic climate," she added.

The analyst added that in order to build on last year's success, firms should focus on selling services that will deliver a visible return in 2008 either in cost, speed or market impact.

Meanwhile, the analyst said last week that economic pressures are causing media companies to look for ways to reduce risk by demanding more accountability from their partners.