Extensive study of true growth (organic, constant currency) across 19 IT services market segments indicates that the market grew by 4.1% year-over-year in the quarter ending June 2016, a 1.1 percentage point improvement over the same period in 2015. This growth was based on “less poor” growth in the traditional IT infrastructure outsourcing market.

That said, on a quarter-by-quarter basis (i.e., from March to June 2016), industry growth decelerated by 0.4 percentage points, down from 4.5%. This deceleration occurred across the four major service provider groups we track, and in four of seven industry verticals, four of six service types, and three of the four regions.

Our year-over-year change in growth analysis reveals weakness trending for the large Indian IT services firms and Midsized service providers. The organic, constant currency growth of the large Indian IT services firms has weakened for four consecutive quarters, dropping from 13.2% in the June 2015 quarter to 9.5% in the June 2016 quarter. Similarly, the Midsized players’ growth has decelerated by 3.2 percentage points annually. On the other hand, the larger peer groups – Systems Integration Heritage and Infrastructure Heritage service providers have grown by 0.9 percentage points and 3.5 percentage points respectively over the past year.

The IT services industry is buffeted by ongoing changes, but the “black-box” nature of the industry makes it difficult for key stakeholders to answer basic – yet crucial – questions. To address these challenges, Everest Group has partnered with DeepDive to develop a systematic methodology to examine detailed industry growth trends, forecast industry and market segment growth rates, and measure and compare performance among major IT services providers.