TechMarketView, a new style of IT analysis organization that covers the tech sector in the United Kingdom, has released a report ‘UK IT Services Market Trends and Forecasts 2010’ that envisages a further decline in the country’s IT market. The report states that the country’s IT market would witness a regression during 2010 as ‘value for money’ persists to be a crucial driver for the spend on information technology services.

While the analysis firm stated that the IT services market dwindled by merely in excess of one per cent during 2009, in its most recent research on IT services Gartner, a global IT research and advisory firm, demonstrated that the global revenue for this business sector had dropped 5.3 per cent from $805 billion in 2008 to $763 billion during 2009. Gartner said that the drop was determined by factors like policies aimed at just maintaining the levels of revenues; maintain control on expenses as well as managing cost-effectiveness.

Quoting the TechMarketView report, an industry related website says that value for money which was driving competitive pricing and less significant transactions was among the four main client tendencies that was determining the services policies of the vendors. Fast deployment system (rapid response), using information technology to spread out business and make it more resourceful (business exploitation) and business control that includes security and governance as well as hazard and conformity services, were considered to be the other three key factors responsible for shaping the vendors’ services policies.

The report further stated that augmentation in the UK information technology services market was unlikely till 2011. In addition, project services were also unlikely to resume growth till 2012. The report observed that spend in consultancy has begun to pick up only just. Nevertheless, the analysis firm added that other aspects, such as mobile Internet, cloud computing, consumer IT and social media would basically restructure the IT services market in the UK. At the same time, TechMarketView remarked that outsourcing that comprises about 45 per cent of the £39 billion worth software and information technology services market in the UK will eventually turn out to be a larger section in due course because an increasing number of firms would outsource their business process and IT infrastructure. Above all, the report stated that BPO and application outsourcing, inclusive of SaaS, would witness a double-digit growth in future.