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World's top five IT outsourcing firms

Last updated on: May 21, 2012 13:46 IST

World's top five IT outsourcing firms

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Worldwide IT outsourcing (ITO) revenue totalled $246.6 billion in 2011, a 7.8 percent increase from 2010 revenue of $228.7 billion, according to Gartner, world's leading information technology research and advisory company.

Indian-based IT services providers and providers rooted in cloud-based services delivered the highest growth rates in 2011.

"Revenue cannibalisation resulting from client adoption of industrialised, and often cloud-based, services risks muting the growth opportunities for the ITO providers that are heavily weighted in infrastructure outsourcing," said Bryan Britz, research director at Gartner.

"Strategies will vary as clients are likely to pursue hybrid cloud strategies requiring providers to deliver some asset-light and some asset-heavy offerings -- which will result in varying growth trajectories among competitors over the next several years."

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Photographs: Reuters

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According to the report, IBM maintained the number one position, as its revenue grew 7.8 per cent, and its revenue accounted for 10.9 per cent of ITO revenue. IBM was ranked as the leading provider across all regions.

Next HP grew below the market growth rate, but retained the number two worldwide market share position with 6.1 per cent market share. Fujitsu, helped by currency gains, overtook CSC for the number 3 worldwide market share position in 2011.

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Photographs: Sherwin Crasto/Reuters
Tags: IBM , ITO , CSC , Fujitsu

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World's top five IT outsourcing firms

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Worldwide top five ITO providers by revenue, market share in 2011

IBM

Ranking: 1

Revenue: $26,923 million

Market share: 10.9 per cent

Revenue growth (2010-2011): 7.8 per cent

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Photographs: Thomas Peter/Reuters
Tags: ITO , IBM

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HP

Ranking: 2

Revenue: $15,107 million

Market share: 6.1 per cent

Revenue growth (2010-2011): 2.0 per cent

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Photographs: Charles Platiau/Reuters
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Fujitsu

Ranking: 3

Revenue: $10,981 million

Market share: 4.5 per cent

Revenue growth (2010-2011): 10.3 per cent

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Image: Fujitsu office in Bracknell, UK
Photographs: Courtesy, Wikimedia Commons
Tags: , Fujitsu

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CSC

Ranking: 4

Revenue: $10,374 million

Market share: 4.2 per cent

Revenue growth (2010-2011): 0.0 per cent

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Image: CSC Headquarters in Falls Church, Virginia
Photographs: Courtesy, CSC
Tags: CSC

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Accenture

Ranking: 5

Revenue: 6,530 million

Market share: 2.6 per cent

Revenue growth (2010-2011): 18.2 per cent

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Image: Bill Green, the chairman and chief executive of Accenture Ltd
Photographs: Arko Datta/Reuters
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Forty-three providers booked 2011 revenues of $1billion or more. This group of providers collectively grew by 9.5 per cent during 2011.

After excluding India-based IT services providers, cloud-centric providers, and providers that made sizable acquisitions during the year, the remaining group of large ITO providers grew by only 6.5 percent during 2011.

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Photographs: Reuters
Tags: ITO

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"For many leading providers in the ITO market, 2011 revenue results demonstrate how challenging simply maintaining a market share position has become, much less gaining share -- and this challenge is likely to worsen over the next few years for providers that do not address these forces," Britz said.

"The challenges are likely to spur consolidation to augment growth, posing risk to the consolidators, because acquisitions have been a challenge in the IT services market."


Photographs: Reuters
Tags: Britz , ITO

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