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Education Sees Least Growth in IT Services

Worldwide spending on services related to information technology increased modestly last year following a sharp dip in 2009. According to a new report from IT market research firm Gartner, education saw the slowest growth of all sectors in this type of IT spending.

The report, "Market Share Analysis: IT Services, Worldwide, 2010," covered end-user spending on all forms of IT services, including software support, hardware support, process management, consulting, development, and integration. It indicated that overall worldwide spending on these services totaled $792.96 billion in 2010, up 3.1 percent from 2009, which had experienced a recession-related drop to $769.17 billion.

"There is little doubt that the effects of the global recession of 2008 and 2009 are still very much being felt, but the market for IT services bounced back in 2010 after a 5.1 percent revenue decline in 2009," said Kathryn Hale, research vice president at Gartner, in a statement released to coincide with the report.

Education and government tied as the two sectors with the least growth in IT services spending, at 1.6 percent worldwide.

Top vendors for IT services included IBM, with a 7.6 percent market share; HP, 4.5 percent; Fujitsu, 3 percent; Accenture, 2.8 percent; and CSC, 2 percent. The strongest growth, according to Gartner, came from companies based in India.

"Although global sourcing makes the location of a provider's headquarters increasingly less relevant, we found that India-based vendors continue to grow above the market average and, therefore, continue to gain market share," said Dean Blackmore, senior research analyst at Gartner, also in a prepared statement. "In a market that grew 3.1 percent in 2010, India-based vendors collectively grew 18.9 percent, increasing their market share from 4.8 percent in 2009 to 5.5 percent in 2010."

The top growth category, according to the report, was software support at 6.6 percent.

The complete report is available now for $1,295. Further details can be found here.

About the Author

Executive Producer David Nagel heads up the editorial department for 1105 Media's education publications — which include two daily sites, a variety of newsletters and two monthly digital magazines covering technology in both K-12 and higher education.

A 21-year publishing veteran, Nagel has led or contributed to dozens of technology, art and business publications.

He can be reached at dnagel@1105media.com. You can also connect with him on LinkedIn at linkedin.com/profile/view?id=10390192 or follow him on Twitter at @THEJournalDave (K-12) or @CampusTechDave (higher education). A selection of David Nagel's articles can be found on this site.


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