Houston: Accelerated activity in global outsourcing boosted IT services market to $ 569 billion last year, up 6.2 per cent from 2002, making India a major beneficiary as it attracted a wide array of companies to its shores.

The worldwide IT services market grew from $ 536 billion in 2002 to $ 569 billion last year, with US suppliers continuing to lead the pack in terms of revenue and market share, a recent report by the research firm Gartner said.

It also said the revenue of vendors-based in India grew 29 per cent, making it 1.4 per cent of the total market.

Some US suppliers saw strong growth from offshoring trends, as their international presence allowed them to drive sales abroad. However, Indian companies were also major beneficiaries.

India's high-skill, lower-wage outsourcing market attracted a wide array of companies to its shores and added to the need for IT services.

"India is gaining mostly on geographic positioning and almost all the work they are doing is offshoring," said Gartner analyst Dean Blackmore.

Blackmore said that 92 per cent of India's IT services revenue came from outside of the country.

Outsourcing, which can be done within the same country or involve sending work to another nation, is the main engine for IT services right now, said Gartner analyst Kathryn Hale.