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October 25, 2004 4:49 PM PDT

Defense, Japanese firms see services revenue surge

Worldwide spending on information technology services grew 6.4 percent to $570 billion last year, with defense-oriented companies and Japan-based providers notching market share gains.

In a study published earlier this month, market researcher Gartner said IT spending rose from $536 billion in 2002. Gartner found that Northrop Grumman, Lockheed Martin, Fujitsu and Hitachi grew faster than the overall market. IBM remained the frontrunner with 7.5 percent market share, followed by Electronic Data Systems with 3.7 percent, Fujitsu with 2.8 percent, Computer Sciences Corp. with 2.2 percent and Hewlett-Packard with 2.2 percent.

A separate study this month from research firm IDC said IBM held the top market share position last year in information systems outsourcing, which refers to companies farming out tasks such as data center operations. EDS, CSC, Fujitsu and Atos Origin filled out the top five, according to IDC.

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