Gartner Says Worldwide IT Services Revenue Grew 6.7 Percent in 2004.

STAMFORD, Conn. -- The market for worldwide IT services grew 6.7 percent to $607.8 billion in 2004, up from $569.6 billion in 2003, according to early results from Gartner, Inc. However, the U.S. dollar's continued decline overstates this growth. Gartner analysts estimate that worldwide growth was approximately 2.2 percent in real terms.

IBM continued to lead the worldwide IT services industry, as it accounted for 7.6 percent of global sales. Accenture showed the strongest growth among the top 6 vendors, as its revenue increased 16.4 percent (see Table 1).

"Outsourcing was the growth driver for IBM and HP in 2004, while Accenture experienced equivalent increases in both the outsourcing and consulting segments," said Kathryn Hale, principal analyst for Gartner's worldwide IT services group. "Computer Sciences and EDS each have a strong concentration of revenue in the United States, which impacted global growth for both companies in a year the dollar declined."

Fujitsu's outsourcing business grew in Europe, Middle East and Africa, but the weak economic recovery in Japan, and the impact of the company's restructuring efforts resulted in a growth rate slightly below the industry average.

Table 1
Preliminary Worldwide IT Services Vendors by Revenue Estimates
(Millions of U.S. Dollars)

                      2004    2004 Market   2003    2003 Market Growth
Company              Revenue   Share (%)   Revenue   Share (%)   (%)
----------------------------------------------------------------------
IBM                   46,423        7.6     42,635       7.5      8.9
EDS                   20,601        3.4     20,610       3.6      0.0
Fujitsu               16,860        2.8     15,934       2.8      5.8
Hewlett-Packard       14,193        2.3     13,105       2.3      8.3
Accenture             14,142        2.3     12,150       2.1     16.4
Computer Sciences
 (CSC)                14,032        2.3     13,005       2.3      7.9
Others               481,565       79.3    452,173      79.4      6.5
Total Market         607,816      100.0    569,612     100.0      6.7
----------------------------------------------------------------------
Source: Gartner Dataquest (February 2005)

These estimates are preliminary at this time. Detailed market share statistics are scheduled to be published in April.

Additional analysis on the IT services industry will be presented at the Gartner Outsourcing Summit 2005, April 4-6 at the Westin Century Plaza in Los Angeles. This Summit is the most comprehensive conference organized for buyers and users of outsourcing services. The emphasis is on sharing strategies that ensure tangible, sustainable results in a business environment where half of all outsourcing arrangements do not deliver on their expected benefit. Additional information about the conference is available at www.gartner.com/us/itsourcing.

About Gartner

Gartner, Inc. (NYSE:IT and ITB) is the leading provider of research and analysis on the global information technology industry. Gartner serves more than 10,000 clients, including chief information officers and other senior IT executives in corporations and government agencies, as well as technology companies and the investment community. The Company focuses on delivering objective, in-depth analysis and actionable advice to enable clients to make more informed business and technology decisions. The Company's businesses consist of Research and Events for IT professionals; Gartner Executive Programs, membership programs and peer networking services; and Gartner Consulting, customized engagements with a specific emphasis on outsourcing and IT management. Founded in 1979, Gartner is headquartered in Stamford, Connecticut, and has more than 3,500 associates, including approximately 1,000 research analysts and consultants, in more than 75 locations worldwide. For more information, visit www.gartner.com.