
Study Period | 2019 - 2030 |
Base Year For Estimation | 2024 |
Forecast Data Period | 2025 - 2030 |
Market Size (2025) | USD 490.86 Billion |
Market Size (2030) | USD 671.57 Billion |
CAGR (2025 - 2030) | 6.47 % |
Market Concentration | Low |
Major Players![]() *Disclaimer: Major Players sorted in no particular order |
United States (US) IT Services Market Analysis
The United States IT Services Market size is estimated at USD 490.86 billion in 2025, and is expected to reach USD 671.57 billion by 2030, at a CAGR of 6.47% during the forecast period (2025-2030).
The IT services landscape in the United States is undergoing significant transformation driven by workforce dynamics and technological advancement. According to the Bureau of Labor Statistics, employment growth in the IT sector is projected to surge by 31% by 2026, with approximately 255,400 new IT jobs expected to be created during this timeframe. This substantial workforce expansion reflects the growing demand for specialized IT talent across industries. The digital transformation wave has particularly impacted the financial sector, with the American Bankers Association reporting an estimated 91% adoption rate of Software-as-a-Service (SaaS) solutions among banking institutions, highlighting the sector's rapid technological evolution.
Security considerations and data protection have emerged as critical factors shaping the IT services landscape. The Identity Theft Resource Center (ITRC) reported 1,802 data breaches in 2022, emphasizing the growing importance of robust cybersecurity services. This has led to the widespread adoption of zero-trust security models, with a recent survey by Converge Technology Solutions revealing that 76% of organizations outsource at least some zero-trust tasks to managed IT services providers. The increasing sophistication of cyber threats has prompted organizations to seek specialized IT security expertise, driving the demand for comprehensive security services.
The healthcare sector has emerged as a significant adopter of digital services, driven by the need for digital transformation and improved patient care delivery. Digital health startups in the United States have shown remarkable growth, with 572 deals recorded in 2022, reflecting the sector's dynamic evolution. Healthcare organizations are increasingly implementing advanced technologies such as AI, IoT, and cloud computing to enhance operational efficiency and patient care quality. This transformation is particularly evident in the adoption of telemedicine solutions and electronic health records (EHR) systems.
The retail and e-commerce sectors continue to drive significant IT service adoption, with major retailers expanding their digital capabilities and omnichannel presence. According to recent industry data, e-commerce as a share of total U.S. retail sales reached 15.4% by Q2 2023, demonstrating the growing importance of digital retail channels. Major retailers are increasingly partnering with IT service providers to enhance their digital capabilities, as evidenced by recent collaborations between retail giants and technology firms to develop innovative solutions for improving customer experience and operational efficiency.
United States (US) IT Services Market Trends
Growing Emphasis on Leveraging the Core Competencies by Outsourcing Non-core Operations
Organizations across the United States are increasingly recognizing the strategic importance of focusing on their core competencies while outsourcing non-essential IT operations to specialized service providers. This trend represents a fundamental shift in business strategy, where companies prioritize their internal resources and expertise for activities that directly contribute to their competitive advantage and overall business growth. The scope of non-core operations being outsourced encompasses various functions including quality assurance and testing, IT support and helpdesk services, product and service customization, upgradation and maintenance, transcription and data entry, and IT infrastructure management.
According to CACEIS, an asset servicing banking group, United States managers are actively optimizing their operating models by outsourcing non-core elements of their operations to third parties. This trend is particularly evident in the asset management industry, where managers handling various funds governed by foreign laws seek to streamline their operations. The cost efficiency aspect plays a crucial role in this shift, as businesses experience significant cost reductions when outsourcing IT activities. Service providers offer economies of scale, optimized processes, and access to specialized skills, resulting in reduced operational costs in a competitive business landscape.
Organizations are Increasingly Focusing on IT as a Means to Gain Differentiation by Relying on Outsourced Vendors
The constant pursuit of competitive distinction has become a primary driver for organizations leveraging IT outsourcing services. In the highly competitive business environment of the United States, companies are actively seeking innovative ways to differentiate themselves from competitors through strategic IT partnerships. By collaborating with outsourced vendors possessing specialized skills and capabilities, businesses are developing innovative IT solutions that set them apart in the market. This trend is particularly evident in the growing demand for customized IT solutions that align precisely with unique business objectives and customer requirements.
The Bureau of Labor Statistics projects up to a 25% increase in demand for software developers, quality assurance analysts, and testers until 2031, driven by the expansion of software development for artificial intelligence, Internet of Things, robotics, and automation. This growth in specialized IT roles has led to the emergence of strategic partnerships with outsourced IT vendors that extend beyond traditional transactional relationships. These partnerships are characterized by collaboration, shared objectives, and alignment with business goals, where outsourced vendors become integral to their clients' innovation and differentiation strategies.
Ongoing Migration Toward the Cloud and Adoption of Virtualized Infrastructure
The adoption of cloud services and virtualized infrastructure has become a cornerstone of IT transformation in the United States. According to the National Association of State Chief Information Officers (NASCIO) report in 2023, hybrid and multi-cloud environments have become the standard in cloud migration strategies. Infrastructure as a Service (IaaS) and Software as a Service (SaaS) models are utilized in approximately 23% to 24% of states' overall system and application catalogs, demonstrating the significant shift toward cloud-based operations.
The report further indicates that 30% of organizations have completed their cloud strategy or roadmap, while 70% are actively developing strategies, highlighting the strategic nature of cloud adoption decisions. Additionally, approximately 60% of organizations have incorporated cloud adoption into their enterprise IT governance processes, signifying a mature approach to cloud integration. This trend is further exemplified by major investments in cloud infrastructure, such as Amazon's announcement in June 2023 to invest USD 7.8 billion in Ohio through 2030 to expand its data center operations, responding to increased demand from businesses and government entities for cloud services.
Segment Analysis: By Service Type
Application Outsourcing Segment in US IT Services Market
Application outsourcing represents a significant portion of the US IT services market, holding approximately 33% market share in 2024, with revenues reaching $57.70 billion. This substantial market position is driven by the increasing demand from US companies seeking cost-effective software services for application development. The segment's strength is particularly evident in sectors like retail, healthcare, and financial services, where organizations are rapidly digitalizing their operations and require sophisticated application services development and maintenance. The considerably high costs of building software in-house, coupled with extended timeframes for software development projects, have led companies in the United States to actively seek talent abroad to accelerate software and application development delivery while reducing costs and time-to-market. This approach enables organizations to leverage both offshore software outsourcing benefits and gain advantages of onshore and nearshore outsourcing, such as improved communication and cultural alignment.

Infrastructure Outsourcing Segment in US IT Services Market
Infrastructure outsourcing is emerging as the fastest-growing segment in the US IT services market, projected to grow at approximately 4% during the forecast period 2024-2029. This remarkable growth is primarily driven by the increasing adoption of advanced technologies and growing digital transformation in businesses, coupled with the rising need to replace and modernize outdated IT infrastructure among companies. The segment's growth is further accelerated by the swift emergence of IoT and 5G technologies, particularly in the telecom sector, where organizations need to modernize their outdated IT infrastructure to remain competitive and generate new revenue streams. Additionally, evolving consumer demands have led organizations to focus on continuous innovation, significantly increasing the demand for flexible, modern, and scalable IT infrastructure that consolidates business processes and allows businesses to rapidly improve end-user experiences and mitigate problems on both internal and external applications.
Remaining Segments in Service Type Segmentation
Other services, including web hosting, network services, and administration outsourcing services, play a crucial role in shaping the US IT services market landscape. These services are particularly vital for organizations lacking technical expertise and needing to keep pace with technological advancements while maintaining focus on their core operations. The segment encompasses comprehensive hosting solutions with a wide range of services, including cloud hosting services that have gained significant traction due to their enhanced security and data management capabilities. Network outsourcing services within this category are especially crucial for manufacturing organizations implementing advanced technologies, while administration outsourcing services help streamline operational efficiency across various business functions.
Segment Analysis: By Organization Size
Large Enterprises Segment in US IT Outsourcing Market
Large enterprises continue to dominate the United States IT outsourcing market, holding approximately 61% market share in 2024. This significant market presence is driven by these organizations' complex IT environments and their increasing adoption of IT outsourcing strategies for better backend IT support, infrastructure updates, and transformation from CAPEX-based to OPEX-based business models. Large enterprises are particularly focused on infrastructure modernization and cloud migration initiatives, with many organizations partnering with IT service providers to manage their application development, maintenance, rationalization, and standardization processes. The segment's growth is further supported by governmental initiatives promoting cloud migration across various sectors including BFSI, IT, telecom, healthcare, and manufacturing industries. Additionally, large enterprises are increasingly leveraging IT outsourcing for specialized services such as network modernization, cloud enablement, and digital transformation projects, which require extensive expertise and resources that outsourcing partners can efficiently provide.
SMEs Segment in US IT Outsourcing Market
The Small and Medium Enterprises (SMEs) segment is experiencing the most rapid growth in the US IT outsourcing market, with an expected growth rate of approximately 4% during the forecast period 2024-2029. This accelerated growth is primarily driven by SMEs' increasing adoption of digital transformation initiatives and their need for professional IT service firms to help manage core business IT processes. The segment's growth is particularly notable in the retail and e-commerce sectors, where small-scale platforms are rapidly expanding their operations and requiring sophisticated IT support. The cost-effectiveness of IT outsourcing is a major factor for SMEs, as hiring full-time IT professionals can be prohibitively expensive for businesses with limited capital. Furthermore, government initiatives supporting SME development, such as the Research and Development tax credit doubling for small businesses, are creating additional opportunities for IT outsourcing service providers to support these enterprises in their technological advancement and operational efficiency improvements.
Segment Analysis: By Industry
BFSI Segment in United States IT Outsourcing Market
The Banking, Financial Services, and Insurance (BFSI) sector maintains its dominant position in the United States IT outsourcing market, commanding approximately 28% market share in 2024. This leadership position is driven by the rapid digital transformation of banking institutions, the emergence of innovative fintechs, and substantial growth in digital payments coupled with increasing cloud adoption in the country's BFSI sector. The sector's prominence is further reinforced by financial institutions' growing emphasis on personalized banking experiences and the transition to omnichannel platforms, which require robust IT infrastructure and specialized expertise. Mobile banking applications have witnessed remarkable growth, driving significant demand for application services outsourcing. Additionally, the sector's focus on robust cybersecurity measures, regulatory compliance requirements, and the need for innovative solutions to meet evolving customer expectations continues to fuel the demand for IT outsourcing services among BFSI organizations.
Healthcare Segment in United States IT Outsourcing Market
The healthcare sector is emerging as the fastest-growing segment in the United States IT outsourcing market, projected to grow at approximately 5% during 2024-2029. This exceptional growth is primarily attributed to the sector's aggressive adoption of advanced technologies such as AI, ML, and IoT to enhance patient care and boost healthcare service quality. Healthcare organizations are rapidly embracing cloud solutions for innovation and efficiency improvements, providing the foundation for deploying new technologies like analytics and artificial intelligence. The convergence between IT services and medical fields, reflected in the emergence of seamlessly connected sensors and devices, is creating substantial opportunities for IT outsourcing providers. The sector's focus on improving healthcare delivery through digital transformation, coupled with the need for robust cybersecurity measures and regulatory compliance, is expected to continue driving strong growth in IT outsourcing adoption among healthcare organizations.
Remaining Segments in Industry Segmentation
The United States IT outsourcing market encompasses several other significant industry segments including Manufacturing, IT & Telecom, Retail & E-commerce, Government & Public Sector, Energy, Utilities & Mining, and Others. The manufacturing sector is experiencing substantial growth driven by Industry 4.0 initiatives and smart manufacturing trends. The IT & Telecom sector continues to evolve with 5G implementation and digital transformation initiatives. Retail & E-commerce maintains steady growth through omnichannel strategies and digital commerce platforms. The Government & Public sector is focusing on modernizing legacy systems and improving digital services. The Energy, Utilities & Mining sector is advancing through grid modernization and digital operational improvements. Each of these segments contributes uniquely to the market's dynamics, driven by their specific digital transformation needs and technological advancement requirements.
United States (US) IT Services Market Overview
Top Companies in United States IT Services Market
The United States IT services market features prominent players including IBM Corporation, Microsoft, Hewlett Packard Enterprise, DXC Technology, NTT Corporation, Infinitely Virtual, and CDW Corporation. These companies are driving innovation through continuous investments in emerging technologies like artificial intelligence, cloud computing, and automation solutions. Operational agility is being enhanced through the adoption of DevOps practices, agile methodologies, and security-focused development approaches. Strategic partnerships and collaborations with technology providers are becoming increasingly common to expand service offerings and market reach. Companies are focusing on digital transformation initiatives, with particular emphasis on cloud migration, data analytics, and cybersecurity solutions. The market is characterized by ongoing expansion into new service areas, particularly in cloud-based solutions, application modernization, and infrastructure management services, with companies increasingly offering platform-based and as-a-service delivery models. This expansion is crucial for maintaining IT market share in the competitive landscape.
Market Dominated by Established Global Players
The competitive landscape is primarily dominated by large global technology conglomerates with extensive service portfolios and established market presence. These major players leverage their broad technological capabilities, substantial R&D investments, and extensive partner ecosystems to maintain their market positions. The market shows moderate consolidation, with larger players continuously expanding their capabilities through strategic acquisitions of specialized technology firms and niche service providers. Regional and specialized providers maintain their presence by focusing on specific industry verticals or technology domains, though they face increasing pressure from the comprehensive service offerings of larger competitors.
The market is witnessing a trend of strategic partnerships and alliances, particularly in emerging technology areas such as artificial intelligence, cloud services, and cybersecurity. Major players are increasingly focusing on developing industry-specific solutions and expanding their digital transformation capabilities through both organic growth and strategic acquisitions. The competitive dynamics are further shaped by the presence of offshore service providers who are establishing stronger onshore presence through local partnerships and delivery centers, adding to the market's competitive intensity. This dynamic is crucial for understanding the IT industry overview and the technology industry analysis.
Innovation and Specialization Drive Future Success
For incumbent players to maintain and expand their market share, focus on continuous innovation and service portfolio expansion is crucial. Companies need to strengthen their capabilities in emerging technologies while maintaining strong relationships with key technology partners and building industry-specific expertise. The development of proprietary platforms and solutions, combined with flexible delivery models and strong cybersecurity capabilities, will be essential for maintaining competitive advantage. Additionally, incumbents must balance the need for standardization with customization capabilities to meet diverse client requirements while maintaining operational efficiency.
For contenders looking to gain ground, specialization in high-growth technology areas and focus on specific industry verticals present significant opportunities. Success factors include developing strong domain expertise, building robust delivery capabilities, and establishing strategic partnerships with technology providers. The ability to offer innovative pricing models and flexible engagement options while maintaining service quality will be crucial. Companies must also navigate potential regulatory challenges, particularly in areas such as data privacy and security, while addressing the growing demand for sustainable and environmentally responsible IT solutions. The market's future will be shaped by the ability to adapt to changing client needs, technological evolution, and regulatory requirements while maintaining competitive pricing and service quality. This adaptability is vital for gaining IT market share and excelling in the IT solutions industry.
United States (US) IT Services Market Leaders
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IBM Corporation
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Accenture PLC
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Microsoft Corporation
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Infosys Limited
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Wipro Limited
- *Disclaimer: Major Players sorted in no particular order

United States (US) IT Services Market News
- June 2023: Genpact, an IT service firm dedicated to driving transformative outcomes for businesses, proudly revealed its new partnership with Walmart. This strategic collaboration will see Genpact continue its unwavering support for Walmart's North American finance and accounting operations, with a particular focus on the USA market. This initiative is poised to not only propel Genpact's growth in the IT service sector but also contribute significantly to the overall expansion of the IT service market in the USA.
- March 2023: Virtusa Corporation, a leading provider of digital strategy and information technology services, announced a pivotal partnership in cloud migration. This collaboration marks a strategic commitment to supporting Aecon Group Inc.'s ambitious journey toward cloud transformation. Aecon Group Inc., a global construction developer with a strong presence in the USA, will benefit from Virtusa Corporation's expertise and resources in this transformative endeavor.
United States (US) IT Services Market Report - Table of Contents
1. INTRODUCTION
- 1.1 Study Assumptions and Market Definition
- 1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET INSIGHTS
- 4.1 Market Overview
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4.2 Industry Attractiveness - Porter's Five Forces Analysis
- 4.2.1 Bargaining Power of Suppliers
- 4.2.2 Bargaining Power of Buyers
- 4.2.3 Threat of New Entrants
- 4.2.4 Degree of Competition
- 4.2.5 Threat of Substitutes
- 4.3 Industry Value Chain Analysis
- 4.4 Assessment of the Impact of COVID-19 on the market
- 4.5 Regulatory Landscape
5. MARKET DYNAMICS
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5.1 Market Drivers
- 5.1.1 Acceleration of Digital Transformation Across Industries and Adoption of New Technologies
- 5.1.2 Growing Emphasis on Leveraging the Core Competencies by Outsourcing Non-core Operations
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5.2 Market Restraints
- 5.2.1 Data Security, Customization, and Data Migration
- 5.3 Comparative Insights: Tier 1 (Large) vs Tier 2 (Medium) IT Services Vendors
- 5.4 In-housing and Outsourcing Analysis
6. MARKET SEGMENTATION
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6.1 By Type
- 6.1.1 IT Consulting and Implementation
- 6.1.2 IT Outsourcing
- 6.1.3 Business Process Outsourcing
- 6.1.4 Other Types
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6.2 By End-User
- 6.2.1 Manufacturing
- 6.2.2 Government
- 6.2.3 BFSI
- 6.2.4 Healthcare
- 6.2.5 Retail and Consumer Goods
- 6.2.6 Logistics
- 6.2.7 Other End-Users
7. COMPETITIVE LANDSCAPE
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7.1 Company Profiles*
- 7.1.1 IBM Corporation
- 7.1.2 Accenture PLC
- 7.1.3 Microsoft Corporation
- 7.1.4 Infosys Limited
- 7.1.5 Wipro Limited
- 7.1.6 TATA Consultancy Services Limited
- 7.1.7 Capgemini SE
- 7.1.8 Atos SE
- 7.1.9 HCL Technologies Limited
- 7.1.10 Leidos Holdings, Inc.
- 7.1.11 Sphere Partners LLC
- 7.1.12 Kanda Software
- 7.1.13 Fingent Corp.
- 7.1.14 Intetics Inc.
- 7.1.15 Integris
- 7.1.16 Synoptek, LLC
- 7.1.17 Simform
- 7.1.18 MAS Global Consulting
- 7.1.19 Algoworks Solutions Inc
- 7.1.20 Icreon Holdings Inc
- 7.1.21 DevDigital LLC
- 7.1.22 Slalom, Inc.
- 7.1.23 VATES S.A.
- 7.1.24 Computer Solution East, Inc.
- 7.1.25 Perficient, Inc.
- 7.1.26 Innowise Group
- 7.1.27 Velvetech LLC
- 7.1.28 CHI Software
- 7.1.29 Edafio Technology Partners
- 7.1.30 VLink, Inc.
- 7.1.31 Ardem Incorporated
- 7.1.32 Unity Communications
- 7.1.33 Accedia
- 7.1.34 Intersog
- 7.1.35 Galaxy Weblinks LTD
- 7.1.36 Wave Access USA
- 7.1.37 Centricsit LLC
- 7.1.38 A3 Logics
- 7.1.39 Bottle Rocket LLC
- 7.1.40 Premier BPO, LLC
- 7.1.41 Sumerge
- 7.1.42 Peak Support, LLC
- 7.1.43 Progent Corporation
- 7.1.44 Sciencesoft USA Corporation
- 7.1.45 Intellectsoft US LLC
8. INVESTMENT ANALYSIS
9. FUTURE OF THE MARKET
United States (US) IT Services Market Industry Segmentation
IT services use business and technical skills to assist enterprises in developing, administrating, and optimizing information and business processes. Moreover, the IT services industry in the United States includes a wide range of services that help businesses manage and optimize their information and business operations. IT consulting and implementation, business process outsourcing, IT outsourcing, and other IT services comprise the market.
The US IT services market is segmented by type (IT consulting and implementation, IT outsourcing, business process outsourcing) and end-users (manufacturing, government, BFSI, healthcare, retail and consumer goods, logistics).
The market sizes and forecasts are provided in terms of value in USD for all the above segments.
By Type | IT Consulting and Implementation |
IT Outsourcing | |
Business Process Outsourcing | |
Other Types | |
By End-User | Manufacturing |
Government | |
BFSI | |
Healthcare | |
Retail and Consumer Goods | |
Logistics | |
Other End-Users |
United States (US) IT Services Market Research FAQs
How big is the United States IT Services Market?
The United States IT Services Market size is expected to reach USD 490.86 billion in 2025 and grow at a CAGR of 6.47% to reach USD 671.57 billion by 2030.
What is the current United States IT Services Market size?
In 2025, the United States IT Services Market size is expected to reach USD 490.86 billion.
Who are the key players in United States IT Services Market?
IBM Corporation, Accenture PLC, Microsoft Corporation, Infosys Limited and Wipro Limited are the major companies operating in the United States IT Services Market.
What years does this United States IT Services Market cover, and what was the market size in 2024?
In 2024, the United States IT Services Market size was estimated at USD 459.10 billion. The report covers the United States IT Services Market historical market size for years: 2019, 2020, 2021, 2022, 2023 and 2024. The report also forecasts the United States IT Services Market size for years: 2025, 2026, 2027, 2028, 2029 and 2030.
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United States (US) IT Services Market Research
Mordor Intelligence provides comprehensive industry analysis and market insights for the United States IT services market, offering detailed coverage of IT solutions, cloud services, managed IT services, and digital transformation services. Our research methodology combines extensive primary and secondary research, leveraging insights from industry experts, technology consultants, and market leaders to deliver accurate market forecasts, size estimations, and trend analysis. The insights are available in an easy-to-read report PDF format, covering crucial aspects like market segmentation, competitive landscape, and growth drivers in the IT industry.
Beyond market research, our consulting expertise helps stakeholders navigate the dynamic technology services landscape through targeted solutions including technology scouting, competition assessment, and go-to-market strategies. We specialize in conducting B2B surveys and interviews with IT service providers, analyzing customer behavior patterns, and providing detailed assessments of emerging technologies and digital platforms. Our team excels in data aggregation and visualization, offering customized dashboards that help track market movements, competitor strategies, and customer satisfaction metrics in the information technology services industry, enabling businesses to make informed decisions and stay ahead in this rapidly evolving market.