Market Trends of IT Services Industry
Cloud Services is Gaining Traction Due to the Emergence of Cloud-based Platform
- There has 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 and 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 IT operation across the cloud-based platform, IT services have become more data-driven and real-time, creating greater value for the business, especially in operational efficiency, business opportunity discovery, and remote access optimization.
- According to a report published by Cloudward in 2022, with 94.44%, Google Drive was by far the most used cloud storage service globally. In next place is Dropbox, used for cloud storage for collaboration, with a still impressive 66.2%, followed by OneDrive (39.35%), iCloud (38.89%), MEGA (5.09 %), Box (4.17%), and pCloud (1.39%).
- As the demand for cloud services is expected to grow over the next few years, with immense demand from the IT and telecommunication industry across the ever-growing corporate sector, the scope for IT infrastructure services from these end users is expected to grow rapidly.
- To increase productivity, governance, and control, many organizations aim to deploy their systems' core to the cloud. Various market vendors are driving their investments to accelerate digital transformation. For instance, in November 2022, IBM announced the availability of IBM Cloud for VMware as a Service. The new solution combines VMware capabilities with IBM's hybrid cloud deployment ambitions to help its clients modernize workloads.
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North America Expected to Register Significant Market 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.
- The banking and financial institutions in the United States are accelerating spending on information technology services, helped by higher growth in the banking sector and improving economic fundamentals. Some Financial Service organizations have the resources and staff available to meet these demands in-house, while others outsource to a qualified IT Service provider.
- Many enterprises in the region have begun adhering to newer methods and processes to gain a competitive advantage, resulting in the increasing adoption of emerging technologies, like AI, IoT, machine learning (ML), Blockchain, robotics, and data science. With the growing digitalization and usage of connected devices in business and industry, IoT applications and sales are anticipated to increase in the region. This transformation is developing space for the growth of IT services in the region.
- Since the pandemic, remote work has quickly gained popularity, and the digital transition has accelerated. Clients will thus anticipate that the IT Solution Consultants they work with and the consulting firms they work with will emphasize digitalization and use technologies for digital transformation. The importance of subject matter expertise (SMEs), client ROIs, a stronger need for strategy, and the requirement to specialize will all be given top priority. To maintain their competitiveness, consultants must stay current on emerging trends.
- Most North American organizations recognize that professional services, such as consultancy, marketing, training, and managed services, can help enhance their business performance. However, most domestic IT services' demands are fulfilled by foreign companies. For instances, in April 2022, Wipro acquired Convergence Acceleration Solutions (CAS Group), a consultancy and program management firm located in the United States that specializes in business and technological transformation for large communications service providers. This acquisition has been aimed to create a joint business that provides the clients of the company with services spanning from strategy formulation and planning through execution and implementation.
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