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Well all said and done IT services was the golden goose and mantra for several IT companies in the last 7 years. But it seems many companies have taken a liking to prune IT services in a big way. According to Economictimes.com HP is on its way pruning the IT services where it is seeing margins in the range of 8-9%. HP the company that was considered the leaders in printers and desktop computers seems to have realised that they have to move for higher end to cut cost and improve the margins. By acquiring the recent giant of IT services EDS for 25$ Billion Dollars HP was moved into second place in overall revenues after IBM.
HP seems to have started to challenge gear manufacturer Cisco Systems. Analysts seems to believe that HP may focus its guns towards buying software, storage and communications equipment companies rather than IT services. so the future of IT services market seems to being heading for a sea change.

Written by Anand.G
The writer is founder of a cricket website Crickick.com, a IT-ITES Professional, an startup enthusiast