Uncertainty prompts massive growth in IT professional services

Market uncertainty will drive IT professional services growth by nearly 20 per cent annually until 2005 according to the latest report from the Gartner Group.

By Ron Coates, 15 February 2001 17:32

NEWS In the US, professional services will grow at 19 per cent compounded annually through to 2004, while in the UK it will hit 18 per cent, with Europe lagging slightly behind. Robert DeSouza, analyst with Gartner, said: "The IT professional services market is somewhat immune to economic downturns. In periods of economic uncertainty, enterprises become cautious and forego initiatives to transform their businesses. Instead they seek IT solutions to cut costs and increase productivity." DeSouza claimed that management services will grow four to five per cent quicker than consultancy and systems integration. However, he warned of fall-off in the more complex and advanced ebusiness developments. He said: "There is the cessation of the lemming effect - people following the pure-play consultancies - and there's been a return to the traditional services model. Gartner estimates that 20 to 30 per cent of the IT professional services spending comes from budgets held by lines of business managers rather than through the IT division of the company. For related news, see
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