Despite a looming recession, the global IT and business services revenue is expected to grow 5.7 per cent this year and 5.2 per cent in 2023, according to an IDC report.
The growth outlook for Asia/Pacific was adjusted downward by roughly 10 basis points each year for the next four years.
The region is forecast to grow at around 5.5 per cent each year.
Within the region, the growth rates for both China and India have been lowered.
The five-year compound annual growth rate (CAGR) is now projected to be 5.2 per cent, compared to the previous forecast of 4.9 per cent.
“While economic conditions for major economies around the world worsened in the last few months, given the services vendors’ strong revenues, bookings, and other leading indicators, the worldwide services market will likely continue on its current growth trajectory,” said Xiao-Fei Zhang, Program Director, IDC Worldwide Services Tracker program.
In nominal dollar-denominated revenue based on today’s exchange rate, the market will grow by 2 per cent this year due to currency headwinds.
IDC has maintained its outlook for the worldwide services market even against the backdrop of a global recession.
“So far, the European services market has weathered the storms of disruption exceptionally well, resulting in a solid market performance in the first half of 2022,” said Milan Kalal, senior research manager, IDC European Services Group.