SAN JOSE, Calif. – The IT services industry is going through one of its most difficult years, while the forecast for 2003 looks to be perhaps slightly better, according to Gartner Dataquest. Worldwide IT services revenue should reach $556.8 billion in 2002, a 2.8% increase from 2001, the research firm said. That number should grow by 6.2% in 2003. Process management remains the fastest-growing IT services segment. Hardware maintenance and support maintenance were lagging. Gartner Dataquest analysts said three factors most influence spending on IT services: *Decision makers' confidence in IT value and ROI. *The pace at which vendors generate demand with compelling new solutions. *The speed at which users' aging technological assets require increasing maintenance and adaptation. "Decision makers' confidence in IT has been shaken. They have sought to cut costs by relying on their existing technological assets. This approach leaves little room for experimentation and innovation," said Robert De Souza, industry analyst for Gartner Dataquest's IT Services group.

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