Worldwide IT Services Revenue Grew 6 Percent in 2005

Gartner: Worldwide IT services revenue totaled $624.4 billion in 2005, a 6 percent increase from 2004 revenue of $588.9 billion, . Traditionally, the outsourcing service segment has been the key growth area for the worldwide IT services market, but that trend was altered in 2005. In 2005, project-based services and software support grew at a greater rate than the overall market average, which has not been the case since 2000. IBM continued to be the worldwide market leader (see Table 1), but its growth rate was below the industry average (see Table 1). Accenture and CSC were the only vendors in the top 6 that experienced revenue growth rates above the overall market average. Table 1 Preliminary worldwide IT Services Vendors by Revenue Estimates (Millions of U.S. Dollars)

Company	2005 Revenue	2005 Market Share (%)	2004 Revenue	2004 Market Share (%)	Growth (%)
IBM	47,357	7.6	46,213	7.8	2.5
EDS	19,757	3.2	19,863	3.4	-0.5
Fujitsu	17,770	2.8	16,786	2.9	5.9
Hewlett-Packard	16,104	2.6	15,471	2.6	4.1
Accenture	15,989	2.6	14,141	2.4	13.1
CSC	14,575	2.3	13,735	2.3	6.1
Others	492,884	78.9	462,717	78.6	6.5
Total Market	624,436	100.0	588,926	100.0	6.0

Source: Gartner Dataquest (June 2006) Healthcare organizations provided the greatest growth in spending on external IT services providers in 2005, however this segment is relatively small compared to other verticals. The healthcare category increased its spending from $17.9 billion in 2004 to $19.4 billion in 2005, representing a growth rate of 8.7 percent. The financial services market continued to be the largest vertical for IT services revenue with revenue totaling $141.3 billion in 2005, a 7 percent increase from 2004. Table 2 Preliminary EMEA IT Services Vendors by Revenue Estimates (Millions of Euros)

Company	2005 Revenue	2005 Market Share (%)	2004 Revenue	2004 Market Share (%)	Growth (%)
IBM	13,546	7.8	12,985	7.9	4.3
Accenture	6,353	3.7	5,586	3.4	13.7
Hewlett-Packard	6,028	3.5	5.784	3.5	4.2
T-Systems	5,840	3.4	5,760	3.5	1.4
Capgemini	5,528	3.2	4,790	2.9	15.4
Atos Origin	5,110	2.9	4,709	2.9	8.5
Others	131,019	75.5	124,349	75.8	5.4
Total Market	173,424	100.0	163,963	100.0	5.8

Source: Gartner Dataquest (June 2006) In the Europe Middle East and Africa (EMEA) region IT services revenue totaled 173 billion euros in 2005, a 5.8 percent increase from 2004. Project-based services, that is consulting, development and integration, returned to a healthier growth in 2005 with a 5.6 percent increase from 2004. In addition, process management grew almost 2 percent higher than the average market growth with an increase of 7.9 percent compared to last year. The top five vendors remain the same as last year with some movement in ranking. IBM maintained its No.1 position while decreasing its market share slightly. Hewlett-Packard lost its No. 2 position to Accenture who moved up from the No.4 spot and increased its market shares to 3.7 percent in 2005. T-Systems' market shares dropped slightly in 2005 pushing it down to No.4 position.

Worldwide IT Services Revenue Publ 20060613