Worldwide IT services revenue totaled $624.4 billion in 2005

Worldwide IT services revenue increased 6% to $624.4 billion in 2005,  from 2004 revenue of $588.9 billion, according to Gartner, Inc.

"Traditionally, the outsourcing service segment has been the key growth area for the worldwide IT services market, but that trend was altered in 2005," said Kathryn Hale, research vice president for Gartner's worldwide IT services group. "In 2005, project-based services and software support grew at a greater rate than the overall market average, which has not been the case since 2000."

IBM continued to be the worldwide market leader, but its growth rate was below the industry average. Accenture and CSC were the only vendors in the top 6 that experienced revenue growth rates above the overall market average.

  • In the Europe Middle East and Africa (EMEA) region, IT services revenue totaled 173 billion euros in 2005, a 5.8 percent increase from 2004.
  • Healthcare organizations provided the greatest growth in spending on external IT services providers in 2005, however this segment is relatively small compared to other verticals. The healthcare category increased its spending from $17.9 billion in 2004 to $19.4 billion in 2005, representing a growth rate of 8.7 percent. 
  • The financial services market continued to be the largest vertical for IT services revenue with revenue totaling $141.3 billion in 2005, a 7 percent increase from 2004.

Preliminary Worldwide IT Services Vendors by Revenue Estimates (Millions of U.S. Dollars)

Company 2005 Revenue 2005 Market Share (%) 2004 Revenue 2004 Market Share (%) Growth (%)
IBM 47,357 7.6 46,213 7.8 2.5
EDS 19,757 3.2 19,863 3.4 -0.5
Fujitsu 17,770 2.8 16,786 2.9 5.9
Hewlett-Packard 16,104 2.6 15,471 2.6 4.1
Accenture 15,989 2.6 14,141 2.4 13.1
CSC 14,575 2.3 13,735 2.3 6.1
Others 492,884 78.9 462,717 78.6 6.5
Total Market 624,436 100.0 588,926 100.0 6.0
Source: Gartner Dataquest (June 2006)

These estimates are preliminary at this time. Detailed market share statistics are scheduled to be published in August. The data published covers approximately 450 IT services vendors, seven geographic regions, 40 countries, six IT services segments, six IT platforms, 14 vertical industries and in 37 countries.

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