Services revenues grow 4.3% crossing $1 trillion mark in 2018: IDC

Worldwide services revenues rose 4.3 percent crossing the $1 trillion mark in 2018, IDC report said.
Services market growth 2018Worldwide revenues for IT Services and Business Services grew 4.5 percent to reach $513 billion in the second half of 2018.

This largely reflects healthy corporate IT spending sustained by large enterprises’ cautious yet optimistic business outlook.

“Steady growth in the services markets are driven by a continued demand for digital solutions across the regions with the Americas continuing to contribute to the bulk of the revenue growth,” said Lisa Nagamine, research manager, IDC’s Worldwide Semiannual Services Tracker.

Main services markets in 2018

United States $459 million (+4.8 percent)
Western Europe $266 billion (+3 percent)
Asia Pacific (excluding Japan) $110 billion (+6.2 percent)

Project-oriented revenues — consulting, integration, application development, etc. — grew by 6.4 percent to $194 billion in H2 and 5.8 percent to $380 billion in 2018. The growth was led largely by business consulting and application development markets.

Business consulting grew 9.1 percent to $63 billion in H2 and 8.3 percent to $123 billion for the year.

Custom application development (CAD) grew 8.3 percent to almost $24 billion in H2 and 7.5 percent to $46 billion for 2018. Market growth was largely due to strong results in the United States.

IT managed services revenues grew 3.8 percent to $240 million in H2 and 3.6 percent to $473 million for 2018.

Application-related managed services revenues (hosted and on-premise application management) grew 5.8 percent to $41 billion in H2 and 5.6 percent to $80 billion for 2018.

IT Outsourcing (ITO) declined due to flat or negative growth in the mature geographic markets. This was offset somewhat by moderate growth in horizontal business process outsourcing (BPO).