Ouch. Things aren't looking great in the services sector right now.
Ovum has revealed that the value of global IT services sales in the second quarter of 2011 was 40% (yes, that's right, 40%) down on the same quarter in 2010.
There were no deals worth more than $1bn in the quarter while the overall number of deals was down 20% declining for the fourth quarter in a row.
"After a disappointing start to the year, things went from bad to worse in the second quarter of 2011 with this very weak performance in contract signings," said Ovum analyst Ed Thomas.
One of the reasons for the big fall was that public sector deals weren't around this quarter to pick up the slack in private sector contracts. Nevertheless, despite the big fall in the second quarter, Ovum still believes annual growth will be 4.4% between 2010 and 2015.
It's going to be interesting to see where that growth will come from. And how quickly it materialises. After all, if the private sector is being cautious and public sector spending is being squeezed, where will the contracts come from?