Smaller rivals growing faster than largest companies, says research

The biggest 50 IT companies in the world are growing more slowly than the rest, despite a combined revenue of $262bn (£143bn), according to a report from Datamonitor.

The business research firm says the findings add weight to the belief that large companies are losing out to smaller, more focussed competitors.

Datamonitor analyst Nick Mayes says the game has changed for many of the traditional powerhouses in the IT services market.

'Pricing pressure is sweeping through infrastructure and applications services, and clients are opting for smaller outsourcing engagements rather than mega-deals,' he said.

'Bigger suppliers are becoming increasingly reliant on M&A activity to improve their top line growth.'

IBM, EDS, Fujitsu and Accenture took the top four spots, with the biggest climbers in the rankings being Indian companies, like Wipro and Tata consultancy with a combined sales growth of 35 per cent.