|Study Period:||2018 - 2026|
|Fastest Growing Market:||Asia Pacific|
|Largest Market:||North America|
Need a report that reflects how COVID-19 has impacted this market and its growth?
IT Services Market is expected to register a CAGR of about 10.36 % during the forecast period 2021-2026. With the onset of COVID-19, the vulnerability of supply chains has been exposed. For most IT organizations, fragile ecosystems included providers of critical IT services. Additionally, work-from-home mandates have led the service providers to ensure that mission-critical enterprise customers have the necessary tools and technologies to enable the speed, security, quality, and overall efficacy of services provided.
- Enterprises are opting for IT services across multiple industry verticals owing to manifold benefits, such as accurate forecasting through business intelligence, thereby helping to optimize the business operations, minimizing the wastage, and increasing the organizational revenues.
- The increasing dependency on cloud services and infrastructure upgrading activities is significantly driving the demand for managed IT services across the emerging market.
- The growth of IT services is expected to be fueled by the introduction of digitization trends prompting the SMBs and other large enterprises to opt for IT infrastructure, which is further responsible for driving the growth in the adoption of IT operation solutions.
- With the growth of IIoT across the Industry 4.0 platform, IT services are gaining traction within the hybrid IT-managed environment. The usage of AI technology is also extending its application across the areas of the manufacturing and design sector, thereby fueling the market demand, during the forecast period.
- With the onset of COVID-19, the vulnerability of supply chains has been exposed. For most IT organizations, fragile ecosystems included providers of critical IT services. Additionally, work-from-home mandates have led the service providers to ensure that mission-critical enterprise customers have the necessary tools and technologies to enable the speed, security, quality, and overall efficacy of services provided.
Scope of the Report
IT services leverage the technical and business expertise to help organizations create, manage, and optimize the information and business processes.The scope of the market considered is by type, size, end-user industry, and geographical analysis throughout the forecast period. The scope of the study considered was project-oriented (integration, consulting application, and development), managed services (application management, outsourcing, and infrastructure services), and support services (hardware and software, and IT knowledge), while evaluating the market size.
|Professional (System Integration, Consulting)|
|Small and Medium Enterprises|
|End User Industry|
|Other End User Industries|
|Middle East and Africa|
Key Market Trends
Cloud Services is Gaining Traction Due to Emergence of Cloud-Based Platform
- There had been a significant breakthrough in cloud computing over the past few years, as cloud solutions offer various advantages but expose data hosted to substantial risks, including privacy, identity theft, among others. Organizations adopting cloud computing should consider implementing IT services that can analyze all executions, applications, and network connections.
- Due to advancements in the IT operation across the cloud-based platform, IT services has become more data-driven as well as real-time, creating greater value for the business, especially in the areas of operational efficiency, business opportunity discovery, and remote access optimization.
- As the demand for cloud services is expected to grow over the next few years, with immense demand form the IT & Telecommunication industry across the ever-growing corporate sector, the scope for the IT infrastructure services from these end-users are expected to grow rapidly.
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United States to Register Significant Growth During the Forecast Period
- The global IT services market is expanding significantly, and the United States represents one of the major IT markets in the world. The rising adoption of smart technologies and increasing security investment are some of the major factors driving the demand for IT services in the United States.
- Many enterprises in the country have begun adhering to newer methods and processes to gain a competitive advantage, resulting in increasing adoption of emerging technologies, like AI, IoT, machine learning (ML), Blockchain, robotics, and data science. This transformation is developing space for the growth of IT services in the country.
- According to the CompTIA’s Cyberstates 2019 report, the economic impact of the US technology sector exceeded than most of the other industries, including retail, construction, and transportation. Additionally, tech services and software accounted for nearly half of spending in the US technology market, and it is significantly higher than the rate in many other global regions.
- The penetration of smartphones and tablets is increasing in the United States, which is also likely to drive the BYOD policy. This is expected to grow further with the rapid integration of IoT across various industries and sectors. This is projected to propel the adoption and incorporation of managed services, thereby, fueling the growth of the market studied.
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The IT services market is highly competitive and consists of a few major players. In terms of market share, some of the players currently dominate the market. However, with the advancement in the IT consultancy services, new players are increasing their market presence thereby expanding their business footprint across the emerging economies.
- March 2020 - IBM partnered with its IT services peers, and it integrated global business services and global technology services capabilities to improve client engagement and increase cloud signings. IBM partnered with Infosys to enable clients’ digital transformations through the IBM public cloud offerings.
- January 2021 - Atos and IBM announced the expansion of a strategic global alliance to help companies accelerate their digital transformation and optimize business processes. Atos and IBM aim to work together to address business challenges to serve the Manufacturing, Energy and Utilities, Oil and Gas, Retail and Transportation sectors. The areas of focus include Asset Lifecycle Management Solutions, Asset Monitoring and Maintenance, Repair, and Operations (MRO) Optimization, Packaging, Transportation and Logistics Optimization Solutions and SMART Waste/Energy Monitoring and Optimization Solutions
- March 2020 - Fujitsu announced the establishment of a new company, "Fujitsu Future Studies Center" (FFSC), a think tank bolstering the formulation and execution of the Fujitsu strategies. It will commence operations on June 1st.
Table of Contents
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
4.1 Market Overview
4.2 Industry Attractiveness - Porter's Five Force Analysis
4.2.1 Threat of New Entrants
4.2.2 Bargaining Power of Buyers/Consumers
4.2.3 Bargaining Power of Suppliers
4.2.4 Threat of Substitute Products
4.2.5 Intensity of Competitive Rivalry
4.3 Impact of COVID-19 on the market
4.4 Market Drivers
4.4.1 Growing Emphasis on Leveraging the Core Competencies by Outsourcing Non-core Operations
4.4.2 Greater Access to a Larger Pool of Talent and Scope for Innovation (as Opposed to Onboarding Expertise)
4.5 Market Challenges
4.5.1 Operational Challenge (such as Perceived Loss of Control and Identification of Key Goals)
5. MARKET SEGMENTATION
5.1 Service Type
5.1.1 Professional (System Integration, Consulting)
5.2.1 Small and Medium Enterprises
5.2.2 Large Enterprises
5.3 End User Industry
5.3.7 Other End User Industries
5.4.1 North America
18.104.22.168 United States
22.214.171.124 United Kingdom
126.96.36.199 Rest of Europe
5.4.3 Asia Pacific
188.8.131.52 Rest of Asia Pacific
5.4.4 Latin America
5.4.5 Middle East and Africa
6. COMPETITIVE LANDSCAPE
*List Not Exhaustive
6.1 Company Profiles
6.1.1 Citrix Systems Inc
6.1.2 Cisco Systems Inc
6.1.3 Dell EMC
6.1.4 IBM Corporation
6.1.5 Hewlett Packard Enterprise
6.1.6 Microsoft Corporation
6.1.7 TCS Limited
6.1.8 Toshiba Corporation
6.1.9 Verizon Communications Inc.
6.1.10 Fujitsu Ltd.
7. RELATIVE POSITIONING OF KEY VENDORS
8. MARKET OPPORTUNITIES AND FUTURE TRENDS
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Frequently Asked Questions
What is the study period of this market?
The IT Services Market market is studied from 2018 - 2026.
What is the growth rate of IT Services Market?
The IT Services Market is growing at a CAGR of 10.36% over the next 5 years.
Which region has highest growth rate in IT Services Market?
Asia Pacific is growing at the highest CAGR over 2021- 2026.
Which region has largest share in IT Services Market?
North America holds highest share in 2020.
Who are the key players in IT Services Market?
IBM Corporation, Hewlett Packard Enterprise Company, Fujitsu Ltd., Toshiba Corporation, Microsoft Corporation are the major companies operating in IT Services Market.