Global technology and cloud-based services operating in India delivered the highest growth rates in the worldwide IT outsourcing (ITO) market last year, according to a report.
The report from Gartner also said global ITO revenue totaled $246.6 billion in 2011, a 7.8% increase from 2010 revenue of $228.7 billion. “Revenue cannibalization resulting from client adoption of industrialized, and often cloud-based, services risks muting the growth opportunities for the ITO providers that are heavily weighted in infrastructure outsourcing,” said Bryan Britz, research director at Gartner.
IBM maintained the No. 1 position, as its revenue grew 7.8%, and its revenue accounted for 10.9% of ITO revenue. IBM was the No. 1 ranked provider in all regions. HP grew below the market growth rate, but retained the No. 2 worldwide market share position with 6.1% market share. Fujitsu, helped by currency gains, overtook CSC for the No. 3 worldwide market share position in 2011. They are followed by Accenture in fifth spot.
Forty-three providers booked 2011 revenues of $1 billion or more. This group of providers collectively grew by 9.5% during 2011. After excluding India-based IT services providers, cloud-centric providers, and providers that made sizable acquisitions during the year, the remaining group of large ITO providers grew by only 6.5% during 2011.