Bangalore: Worldwide IT services revenue grew by 8.2% in 2008 to $806 billion (Rs38.4 trillion), Gartner Inc. said.
India-based vendors grew 12.9% in US dollars in 2008, down from 39.8% growth in 2007, the technology research and advisory firm said.
Gartner said in a statement that the decline in growth of Indian vendors was expected, as these providers sell heavily to the financial sector and typically lead with offshore application development services, which are relatively easy to delay in tough times.
“Vendors had six-eight months of business as usual in 2008, and then approximately four months encountering the beginning of the global economic downturn, featuring widespread cost restrictions and cost reductions,” Kathryn Hale, research vice-president for Gartner’s worldwide IT services unit, said in a statement.
However, Hale added that the only two segments of the market that grew less than forecast were IT management and process management. This, the analyst said, was surprising because “in economic hard times, the potential cost savings from outsourcing usually keep this market segment buoyant”.
Buyer hesitation to commit to long-term requirements of outsourcing agreements took precedence in 2008, the statement said.