Global IT services market finishes 2010 strongly, report finds

Service deal signings in the IT industry ended the year strongly, dismissing sluggish predictions and reaching the highest fourth-quarter total for seven years.

This is the primary finding of a recent report from independent technology analyst Ovum, which revealed that the total contract values for the period reached over $49 billion.

The figure represented a 66 per cent rise on the contract values seen in the previous three months of 2010.

Ed Thomas, Ovum analyst and author of the report, said: “2010 went out with a bang thanks to a number of mega-deals announced during the fourth quarter.

“It was a remarkable turnaround for the sector which, after a sluggish first three quarters, was forecast to hit its lowest annual TCV level for five years. However, rather than enduring another stagnant quarter, a string of large deals meant that the IT services market exploded into life.”

However, despite the strong end to the year, Ovum remains cautious with regard to the future for the IT services industry, with recent activity not a guarantee of better signs to come.

Posted by Rachel Wheeler