Demand for PAYE umbrella contractors in the IT skills market looks set to grow at a healthy rate over the next few years, according to data just released by the technology analysis firm Ovum.
Whereas last year, the global IT services market grew by only two per cent, Ovum’s market trends research suggests that it will reach £463 billion by 2015 and will hit a 4.5 per cent growth rate by 2013. Ovum’s lead market analyst for IT services, Dr Alexander Simkin, said that the IT services market was gradually recovering from the economic downturn. Conceding that the turnaround has so far been patchy, with some servicing lines and geographies emerging faster than others, he added, “By 2013, we expect to see a return to pre-recession growth levels.”
There is a cautionary note in the otherwise positive developments, however. Dr Simkin warned that the market “is not out of the woods yet and there will be small dips along the way.” Even so, strong growth is highly likely, especially in support services, infrastructure-led outsourcing, and business processing outsourcing. Application led outsourcing and project services are also set to grow robustly.
In the aftermath of a frankly “dismal” 2008 and 2009, Dr Simkin continued, enterprise customers are now realising that they will need to make new application investments. He said, “Vendors are making moves to rationalise and modernise applications in anticipation of pent-up demand for them”.
The report places IBM at the front of the line of growth-promoters in the global IT services market, with HP not far behind in second place and Fujitsu in third.
IT contracting, it seems, is about to prosper handsomely