17 Nov 2017
Worldwide Services Revenue Posts Year-Over-Year Growth of 4.0% in the First Half of 2017, According to IDC
FRAMINGHAM, Mass. November 17, 2017 – Worldwide revenues for IT Services and Business Services totaled $475 billion in the first half of 2017 (1H17), an increase of 4.0% year over year, according to the International Data Corporation (IDC) Worldwide Semiannual Services Tracker. IDC expects worldwide services revenues to surpass $1.0 trillion in 2018.
While IT Services delivered more than two thirds of overall services revenue in 1H17, spending on Business Services grew faster than the overall market at 6.0% year over year. IT Services revenues were largely driven by spending on technology outsourcing and project-oriented services, such as application development and systems and network implementation. Business Services spending was led by business process outsourcing and business consulting services.
The largest of the 14 foundation markets IDC uses to analyze end-user spending and vendor revenue was business process outsourcing with 1H17 revenues of $92.9 billion. Systems integration was the second largest foundation market at $62.1 billion. Business consulting was the third largest foundation market in 1H17, followed by IT outsourcing and software deploy and support services. The fastest growing markets were hosting infrastructure services (9.8% growth) and business consulting (8.2% growth). IT outsourcing was the only foundation market to experience declining revenues in 1H17.
On a geographic basis, the United States was the largest services market with revenues of $216.7 billion in 1H17. Western Europe was the second largest region, followed by Asia/Pacific (excluding Japan)(APeJ). The markets with the fastest year-over-year growth in 1H17 were APeJ, Central and Eastern Europe (CEE), and the United States. Only two of the eight regions (Japan and the Middle East & Africa) recorded a decline in services revenue in 1H17.
Global Regional Services 1H17 Revenue and Year-Over-Year Growth (revenues in $US billions)
Source: IDC Worldwide Semiannual Services Tracker 1H 2017
"Steady growth in the services market is largely driven by a continued demand for digital solutions with cloud-related services expected to surpass the $100 billion mark this year," said Lisa Nagamine, research manager with IDC's Worldwide Semiannual Services Tracker.
"As customers seek to execute on their 3rd Platform and digital transformation initiatives they will turn to services firms in increasing numbers to augment skills, gain help with strategic initiatives, and bring new kinds of business value while reducing risk and addressing critical security issues inherent in these new endeavors," said Rebecca Segal, group vice president Worldwide Services.
About IDC Trackers
IDC Tracker products provide accurate and timely market size, vendor share, and forecasts for hundreds of technology markets from more than 100 countries around the globe. Using proprietary tools and research processes, IDC's Trackers are updated on a semiannual, quarterly, and monthly basis. Tracker results are delivered to clients in user-friendly excel deliverables and on-line query tools.
For more information about IDC's Worldwide Semiannual Services Tracker, please contact Kathy Nagamine at 650-350-6423 or firstname.lastname@example.org.
International Data Corporation (IDC) is the premier global provider of market intelligence, advisory services, and events for the information technology, telecommunications, and consumer technology markets. With more than 1,100 analysts worldwide, IDC offers global, regional, and local expertise on technology and industry opportunities and trends in over 110 countries. IDC's analysis and insight helps IT professionals, business executives, and the investment community to make fact-based technology decisions and to achieve their key business objectives. Founded in 1964, IDC is a wholly-owned subsidiary of International Data Group (IDG), the world's leading media, data and marketing services company that activates and engages the most influential technology buyers. To learn more about IDC, please visit www.idc.com. Follow IDC on Twitter at @IDC and LinkedIn.