Global spending on IT services increased by 3.1% to $793bn in 2010, compared to 2009 revenue of $769bn, according to market research firm Gartner.
IBM, with market share of 7.1%, retained its top position in IT services with revenue increase of 2.6% and registering $56.4bn in revenue.
HP which stood second, registered the weakest revenue performance in the top five, with 0.3% growth in its IT services revenue from $35.2m to $35.3m.
Fujitsu posted a 3.5% annual growth in IT services and revenue of $24.1bn in 2010, while Accenture posted the strongest numbers within the top 10 in 2010, growing for $1.3bn to $22.2bn in revenue, a growth rate of 6.1%.
The research firm said that CSC’s growth in the past year was positive, but it was below market growth levels 0.6% due, in part, to an abnormally high level of delays in contract signings in both the federal and commercial sectors, and the impact of a challenging US federal government business (where CSC generated 39% of its revenue).
In addition, software support registered highest growth in 2010 at 6.6%, while weaker performances came from process management and hardware support, both of which grew approximately 1% less than expected growth.
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From a vertical services perspective, the government vertical showed the lowest growth rate in 2010 (tied with the education sector at 1.6%) as governments around the world implement budget cuts aimed at reducing deficits.
Gartner senior research analyst Dean Blackmore said among the over 300 vendors tracked, acquisitions affected more than 10% of total revenue, in a market where no provider has more than 7% market share.
"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," Blackmore said.
"In a market that grew 3.1% in 2010, India-based vendors collectively grew 18.9%, increasing their market share from 4.8% in 2009 to 5.5% in 2010."
