Global services spending growth to turn south

FRAMINGHAM, USA: A new study from IDC forecasts that worldwide services spending will grow 5.2 percent year-over-year in 2009, down 1.5 percentage points from the previous forecast. IDC estimates that the remaining years in the forecast period, through 2012, will also grow slower than predicted earlier.

Gard Little, research manager, Worldwide Services and Emerging Services Opportunities research, said: "Services spending will not contract as it did in the previous economic downturn, however the effects of the current economic crisis will reduce spending growth in the services market across the entire forecast period."

This IDC study also highlights changes in worldwide services spending growth rates by macromarket, including the following:

Project-oriented: Growth rates are forecast to slow to less than three percent in 2009, but then increase by the end of the forecast period.

Outsourcing: The business process outsourcing services market is the largest portion of the services market overall and will be the major driver in growth rate changes. Even with the decrease in growth rate for the hosted application management market, it still remains the fastest-growing market opportunity.

Support and training: Growth rates are forecast to remain below three percent for the remainder of the forecast period. Smaller spending increases are expected in both the hardware and software deployment and support markets.

Source: IDC