Worldwide IT Services Market Remains Strong Despite Faltering U.S. Economy, IDC Says

FRAMINGHAM, MA – JULY 18, 2001 – The slowing U.S. economy is having minimal effect on spending for IT services. According to IDC, the worldwide market grew a solid 11% in 2000 to reach $395 billion. Through 2005, another $305 billion will be added to its bottom line, bringing it to $700 billion. This increase computes to a 12% compound annual growth rate (CAGR) from 2000 to 2005. In 2001, because of the slowing U.S. economy, annual growth will be a slightly lower 11%.


"The downturn in the economy will affect each segment of the overall IT services industry differently. Some segments, like outsourcing, will experience a short-term activity spike. Others, such as consulting, will experience a brief setback," said Ned May, senior analyst with IDC’s Worldwide Services research program.

Through 2005, IDC expects infrastructure services such as application outsourcing, network consulting and integration, and network infrastructure management to represent the fastest-growing segments of the markets. Systems integration services will account for the most revenues, with $142 billion in 2005.

Despite the recent turbulence in the U.S. economy, IDC expects the United States will continue to represent the largest opportunity for IT service providers, accounting for 48% of the market’s value through 2005. However, while the U.S. IT services market registers a 12% CAGR through 2005, Asia/Pacific (excluding Japan) will clock in with a CAGR of almost 23%, making it the fastest-growing opportunity for IT services.

"The application service provider model is receiving strong endorsement in Asia/Pacific and is driving extremely aggressive growth in the application outsourcing market, which is contributing to the increase in the region’s overall IT services market," May said.

IDC recently published Worldwide IT Services Industry Forecast and Analysis, 2000-2005 (IDC #B24857). The report forecasts revenues in the market segmented by 6 geographic regions and 11 service categories. IDC ranks the top 10 global IT suppliers based on their 2000 revenues. Additionally, major trends impacting the market’s growth are discussed, and particular attention is paid to the effects of xSPs, software solutions, and business services. To purchase this report, contact Jim Nagle at 1-800-343-4952, extension 4549, or at

About IDC

IDC is the foremost global market intelligence and advisory firm helping clients gain insight into technology and ebusiness trends to develop sound business strategies. Using a combination of rigorous primary research, in-depth analysis, and client interaction, IDC forecasts worldwide markets and trends to deliver dependable service and client advice. More than 100 analysts in 43 countries provide global research with local content. IDC's customers comprise the world’s leading IT suppliers, IT organizations, ebusiness companies and the financial community. Additional information can be found at

IDC is a division of IDG, the world's leading IT media, research and exposition company.


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