IT Consulting Market Enters Phase of Solid Growth, and EMEA Will Surpass the Americas in Spending by 2009

IDC: IT consulting will be an area of increasing vendor focus, innovation, and user spending. IDC expects worldwide IT consulting to increase at a compound annual growth rate (CAGR) of 5.2% for the 2006–2010 forecast period, with slightly rising growth rates each year. The study reveals several accelerators of spending for IT consulting, such as current pricing trends, which reflect less buyer price sensitivity in high-demand areas of IT consulting; the reemergence of top-line business growth as a spending driver; and the continued bundling of IT consulting with outsourcing.

After a somewhat prolonged period of stagnation, the IT consulting services market has clearly seen a return to many positive trends. IDC has seen an increase in average utilization rates, moderate stabilization in project/contract size, sharply rejuvenated hiring activity, and an increase in corporate focus on core services – a key driver of external IT services spending.

The IDC study also finds that regionally, the Americas currently host the largest market for IT consulting spending; however, the EMEA region will take the lead by 2009 and remain in this position through 2010. Overall, the fastest growing geographies for IT consulting in the next five years will be Latin America and CEMA (Central Europe, Middle East and Africa).

worldwide IT Consulting 2006-2010 Forecast

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