Ovum delivers rosy IT services forecast

Analyst firm Ovum is forecasting a modest recovery in the ANZ IT services market, with growth tending above 4.5 percent in 2010.

However, the market will not see pre-recessionary growth levels until the start of 2011 at the earliest.

Ovum says ANZ has passed through the bottom of the economic cycle and is rebounding conservatively, mostly due to the performance of Australia, which did not technically drop into recession during the crisis.

Ovum predicts that by the end of the forecast period, 2013, the ANZ IT services market will grow to over A$14 billion.

"Of the OECD economies, ANZ is currently leading the pack in terms of economic performance and will see further influx of investment that will drive the services market to pre-recession growth levels by 2011." says Jens Butler, Ovum's Sydney-based principal IT services analyst.

Infrastructure outsourcing and support services have shown consistent strength, providing a safe harbour for many service providers during the downturn, Ovum says.