IT services grows at best rate since 2008

IDC analysis sees Gen-i on top, but Datacom grabbing shares in an improved market

By Reseller News Staff, Auckland | Wednesday, 28 November 2012
The year-on-year (YoY) growth of the IT services market grew by 4.4 percent in the first six months of 2012, according to analyst firm, IDC.

It was the biggest growth patch for the country since the first half of 2008.

According to the company's IT Services Tracker, the local IT services market grew to $1.7 billion.

Outsourcing remained the largest segment in terms of revenues across IT services, growing by 5.1 percent (YoY), with hosted services and outsourced datacentre services going strong.

“Hosting services remain in high demand as both the market understanding and available solution portfolios are maturing," says Louise Francis, senior analyst at IDC New Zealand. "This is shifting the conversation from initial infrastructure discussions to applications and specific business processes and workloads,"

Market share for the top IT service providers has remained unchanged from last year, with 10 companies accounting for 44.6 percent of the total IT services market.

But there was a reshuffle of market share of the top five competitors. According to IDC, Gen-i remains at the top with a share of 13.9 percent, as Datacom supplanted HP for second place, to achieve a 10.3 percent market share. IDC attributes this to high revenue growth in IT outsourcing and Datacom’s selection as one of three preferred vendors for the government's infrastructure as a service (IaaS) work.

HP followed close behind with 3 percent of the market, while IBM took 7.4 percent and Dimension Data 3.2 percent.