The IT services market will enjoy only "moderate growth" over the next five years, industry experts predicted yesterday.
According to the latest research from IDC, the worldwide IT services market will increase to $489.8bn (£312bn) at a 6.7 per cent compound annual growth rate over the five-year period ending in 2007.
But the analyst warned that continuing economic and geopolitical concerns will hold back spending in the short term.
The IDC study, Worldwide IT Services Forecast and Analysis 2002-2007, predicts four per cent growth in 2003, although it explained that much of this will occur in the second half of the year as the global market continues to be plagued by depressed economies and sluggish business profits.
"The prolonged global economic slowdown has dramatically accelerated structural changes in the IT services marketplace," said Ned May, programme manager for Worldwide Services at IDC.
"The end result is that many vendors must now scramble to remake and rebrand themselves to address the market's shifting priorities."
The research cited a lack of compelling emerging technologies to drive growth. IDC said that most IT services remain focused on either optimising prior investments or reducing costs in current IT environments.
Double legal trouble for Musk as he also faces civil lawsuit over renewed British pot-holer 'paedo' claims
Battery development could help boost performance of smartphones
Topological photonic chips promise a more robust option for scalable quantum computers
In quantum physics both the chicken and the egg can come first, claim University of Queensland researchers
Cause-and-effect is not always straightforward in quantum physics