HP and Accenture suffer most as IT services spend declines


HP and Accenture suffer most as IT services spend declines

Karl Flinders

Accenture and HP both recorded double-digit drops in revenue in 2009 compared to the previous year as the overall worldwide spend fell 5.3%.

According to Gartner, $763bn was spent globally on IT services last year, compared to $805bn in 2008.

All the top five suppliers recorded falls in revenue.


Worldwide IT Services Vendors by Revenue (US$m)
  2009 2008 Growth
IBM 55,000 58,892 -6.6
HP 34,585 38,584 -10.4
Fujitsu 23,342 23,444 -0.4
Accenture 20,939 23,732 -11.8
CSC 16,004 17,112 -6.5
Others 613,191 643,6 -4.7
Total Market 763,061 805,44 -5.3
Source: Gartner (May 2010)

Gartner said 2009 was a year like no other before for IT services providers.

Kathryn Hale, research vice president for Gartner's worldwide IT services group said business priorities moved from "aggressive sales or tactical revenue acquisition, to strategies designed to simply maintain revenue levels, keep a handle on costs and manage profitability."

Indian suppliers managed an average of 3.6% growth in 2009, compared to 15.4% in 2008.

Hale said 2010 would be a year of readjustment for IT services providers. "The discipline exercised in 2009 leaves the industry profitable and relatively nimble. 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."

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