USA IT Service Market Size & Share Analysis - Growth Trends & Forecasts (2023 - 2028)

The IT Service in USA is segmented by Type (IT Consulting & Implementation, IT Outsourcing, Business Process Outsourcing), End-user (Manufacturing, Government, BFSI, Healthcare, Retail & Consumer Goods, Logistics).

USA IT Service Market Size

United States IT Services Market Summary
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Study Period 2018 - 2028
Base Year For Estimation 2022
Market Size (2023) USD 217.23 Billion
Market Size (2028) USD 306.10 Billion
CAGR (2023 - 2028) 7.10 %
Market Concentration Low

Major Players

United States IT Services Market Major Players

*Disclaimer: Major Players sorted in no particular order

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USA IT Service Market Analysis

The United States IT Services Market size is estimated at USD 217.23 billion in 2023, and is expected to reach USD 306.10 billion by 2028, growing at a CAGR of 7.10% during the forecast period (2023-2028).

The market estimates are recorded based on the revenue generated based on the accrued services by different players in the market analyzed on nominal terms.

  • Rapidly increasing digital transformation across industries, adoption of new technologies such as artificial intelligence, IoT, and blockchain, and a growing emphasis on leveraging the core competencies by outsourcing non-core operations are the major driving factors of the market. With digital transformation, organizations have become dependent on the success of creative applications and extensions that IT could provide. IT has become a critical competitive edge for most organizations. Moreover, IT outsourcing has become more than a simple cost reduction technique with cloud migrations and service options. Therefore, this new form is driven by organizational motivations regarding business growth, customer experience, and competitive disruption.
  • The government of the United States passed the 21st Century Integrated Digital Experience Act (21st Century IDEA) in December 2018. This Act has established a regulatory framework for all federal agencies to improve and streamline digital service delivery. The government has also implemented various IT initiatives such as IT modernization, Digital Strategy, and investments in Emerging technologies.
  • Additionally, in 2022, the President's Federal government IT budget allocation was more than USD 58 million. This budget enables the government to act according to the 21st Century IDEA and allows the U.S. to General Services Administration and the Federal offices to make initiatives in the IT Services landscape.
  • Customization and data migration are the restraints for the United states IT services market. However, the security of data has been another restraint for the companies in the United States from implementing IT Services across various domains. According to PurpleSecLLC, a cyber security company in the United States, in 2021, enterprises in the region on average experienced nearly 130 security breaches per year, and the annual number of security breaches in enterprise organizations has increased by 27.4%, with over 50% of the cyber-attacks targeted at SMB's. However, companies are investing significant resources in cybersecurity solutions for the enhanced safety of data. Hence, the impact of the restrain would be effective in the short term.
  • The outbreak of COVID-19 prompted organizations across the region to undertake all the necessary steps to ensure the safety of their employees and the community. COVID-19 pandemic had a beneficial impact on the market, owing to the rise in remote working and the expanding digital transformation of enterprises. Businesses are looking for business processes that are seamless, efficient, and accessible from any location. Further, many businesses completed their digital transformation, and many have decided to remain fully remote or operate on a digital and in-office hybrid model. With the growing remote working model, companies are increasing investments in the shift to cloud, and AI-powered technologies, which is expected to boost the IT Services market.

USA IT Service 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 United States IT services market is segmented by type (IT consulting and implementation, IT outsourcing, business process outsourcing, and other types) and end-user (manufacturing, government, BFSI, healthcare, retail, and consumer goods, logistics, and other end-users).

The market sizes and forecasts are provided in terms of value (USD billion) for all the above segments. The market sizes and forecasts are provided in terms of value (USD billion) for all the above segments. The study also tracks the key market parameters, underlying growth influencers, and major vendors operating in the industry, which supports the market estimations and growth rates over the forecast period. The study further analyzes the overall impact of COVID-19 on the ecosystem.

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

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USA IT Service Market Trends

Acceleration of Digital Transformation Across Industries and Adoption of New Technologies

  • Digital transformation in numerous end-user sectors has transformed the company's approach to its customers' digitalization levels. As digital usage and efforts have grown in importance, so have IT services.
  • Digital transformation gives businesses a strategic and competitive advantage in assessing the relevance of IT services, organizing IT services as an activity within the plan-build-run framework, and defining an IT service strategy for the organization. Furthermore, as the IT business undergoes a digital transformation, there are numerous chances to improve the customer experience, and advising clients on using analytics is now an integral aspect of modern consulting. To remain ahead of the disruption, IT consultants are learning new skills.
  • The environment for IT services is rapidly changing. Enterprises in various end-user verticals need help balancing IT infrastructure and cost control. Future technology plans center around adopting emerging technologies, which are expected to grow as businesses attempt to replace old infrastructure.
  • AI, IoT, blockchain, and other technologies are revolutionizing the customer experience in the country's fintech industry, enabling a preference for IT services in the aftermath of rising P2P transfers and payments and using contactless bank cards and cryptocurrency management through digital channels.
  • The spread of new technologies, such as big data and machine learning, increases the demand for updated IT infrastructure. Furthermore, the necessity to update old gear is fueling market development.
United States IT Services Market: Proposed Government Budget for Cyber Security, in USD Billion, United States, 2019-2023

Healthcare Sector is Expected to Register the Fastest Growth During the Forecast Period

  • In recent years, advanced and developing technologies have changed healthcare in the United States. Medical offices and hospitals have adopted new technologies to adapt to a shifting regulatory environment and raise the standard of patient care. Medical facilities throughout the country have high-tech operations that place technological advances in the hands of skilled specialists.
  • IT services in the healthcare industry enable the development of insight-driven solutions for efficient and digitally accessible healthcare suitable for individual companies, small and large multiservice organizations, and franchisees. These services also assist healthcare customers in streamlining integrated care delivery for improved clinical, financial, and operational outcomes.
  • Furthermore, as healthcare companies change their focus toward digitizing healthcare practices for improved care, the implementation of IT services in the healthcare industry is rapidly increasing across the United States. As a result, many regional IT service providers are launching healthcare IT services.
  • Moreover, digital transformation in healthcare in the United States entails integrating digital services or processes across the enterprise, whether a payer, provider, or entity. Digitally changed healthcare may provide individualized and multichannel experiences to patients by merging digital technologies and processes. Advances in electronic medical records or other projects aiming for medical interoperability reflect the current trend in healthcare in the United States toward digital transformation. These innovations are increasing the use of IT services in the United States.
  • Collaboration and merger efforts, as well as increasing investment to digitize the United Health sector and introducing innovative IT services by the highest IT service providers, point to a bright future for IT services in the healthcare segment over the projected period.
United States IT Services Market: United States Federal Government IT Budget for Healthcare and Human Services, By Department, In USD Millions, 2017-2022

USA IT Service Industry Overview

The competition rate in the US IT services market is strong and is projected to stay so over the forecasted period. Companies use solid competitive strategies to stay in the market and keep their customers. This aspect heightens the market's competitiveness.

In April 2022, Wipro acquired Convergence Acceleration Solutions (CAS Group), a consulting and program management organization based in the United States specializing in business and technology transformation for big communications service providers. The combined company provides clients services from strategy creation and planning to execution and implementation.

In March 2022, Intel Corporation, a manufacturer of semiconductor chips across the world, joined the Leidos Alliance Partner Network. Due to LAPN, Leidos can expand its services and broaden next-generation customer innovations. LAPN fosters innovation through a vast network of leading technology companies and leverages its supplier base to handle client concerns. The firm can work together to get the newest items and speed up the implementation of critical new technologies with the support of this strong collaboration.

In January 2022, Iconic IT and Integris combined to form one of the biggest managed service providers for small and medium-sized businesses. The 170 workers of Iconic IT and the 270 employees of Integris are combined due to the merger.

USA IT Service Market Leaders

  1. Infosys Limited

  2. Wipro

  3. Microsoft

  4. Accenture

  5. IBM Corporation

*Disclaimer: Major Players sorted in no particular order

United States IT Services Market Concentration

USA IT Service Market News

  • July 2022: IBM announced a new 33-month work order under its contract with the Defense Microelectronics Activity (DMEA) to offer security services to the Department of Defense (DoD) microelectronics supply chain for critical mission platforms. As part of the Trusted Foundry Access II program, IBM Consulting will continue building secure microelectronics production processes at commercial, state-of-the-art fabrication facilities.
  • July 2022: Infosys Limited has announced the signing of a formal deal to purchase Base Life Science, a leading technology and consulting organization in the European life sciences market. The purchase confirms the company's commitment to assisting global life sciences organizations to realize economic value from digital platforms and data to accelerate clinical trials and expand medication development, positively influencing lives and attaining better health outcomes.
  • July 2022: Tata Consultancy Services and Moveworks, the AI platform that powers the finest workplaces, have formed a partnership. Due to the collaboration, joint clients may give employees seamless help anytime, in any language, and from any location. Clients may rely on Moveworks' knowledge and technology to help their people automatically.

USA IT Service Market Report - Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Assumptions and Market Definition

    2. 1.2 Scope of the Study

  2. 2. RESEARCH METHODOLOGY

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET INSIGHTS

    1. 4.1 Market Overview

    2. 4.2 Industry Attractiveness - Porter's Five Forces Analysis

      1. 4.2.1 Bargaining Power of Buyers

      2. 4.2.2 Bargaining Power of Suppliers

      3. 4.2.3 Threat of New Entrants

      4. 4.2.4 Threat of Substitute Products

      5. 4.2.5 Intensity of Competitive Rivalry

    3. 4.3 Industry Value Chain Analysis

    4. 4.4 Assessment of the Impact of COVID-19 on the market

    5. 4.5 Regulatory Landscape

  5. 5. MARKET DYNAMICS

    1. 5.1 Market Drivers

      1. 5.1.1 Acceleration of Digital Transformation Across Industries and Adoption of New Technologies

      2. 5.1.2 Growing Emphasis on Leveraging the Core Competencies by Outsourcing Non-core Operations

    2. 5.2 Market Restraints

      1. 5.2.1 Data Security, Customization, and Data Migration

    3. 5.3 Comparative Insights: Tier 1 (Large) Vs Tier 2 (Medium) IT Services Vendors

    4. 5.4 In-housing and Outsourcing Analysis

  6. 6. MARKET SEGMENTATION

    1. 6.1 By Type

      1. 6.1.1 IT Consulting and Implementation

      2. 6.1.2 IT Outsourcing

      3. 6.1.3 Business Process Outsourcing

      4. 6.1.4 Other Types

    2. 6.2 By End-user

      1. 6.2.1 Manufacturing

      2. 6.2.2 Government

      3. 6.2.3 BFSI

      4. 6.2.4 Healthcare

      5. 6.2.5 Retail and Consumer Goods

      6. 6.2.6 Logistics

      7. 6.2.7 Other End-users

  7. 7. COMPETITIVE LANDSCAPE

    1. 7.1 Company Profiles

      1. 7.1.1 IBM Corporation

      2. 7.1.2 Accenture

      3. 7.1.3 Microsoft

      4. 7.1.4 Infosys Limited

      5. 7.1.5 Wipro

      6. 7.1.6 TATA Consultancy Services Limited

      7. 7.1.7 Capgemini

      8. 7.1.8 Atos SE

      9. 7.1.9 HCL Technologies Limited

      10. 7.1.10 Leidos Holdings, Inc.

    2. *List Not Exhaustive
  8. 8. COMPETITIVE LANDSCAPE

    1. 8.1 Company Profiles - Medium-Sized Vendors

      1. 8.1.1 Sphere Partners LLC

      2. 8.1.2 Kanda Software

      3. 8.1.3 Fingent Corp.

      4. 8.1.4 Intetics

      5. 8.1.5 Integris

      6. 8.1.6 Synoptek, LLC

      7. 8.1.7 Simform

      8. 8.1.8 MAS Global Consulting

      9. 8.1.9 Algoworks Solutions Inc

      10. 8.1.10 Icreon

      11. 8.1.11 DEVDigital

      12. 8.1.12 Synoptek

      13. 8.1.13 VATES

      14. 8.1.14 Computer Solution East

      15. 8.1.15 Black Point It Services Inc

  9. 9. COMPETITIVE LANDSCAPE

    1. 9.1 Company Profiles - Mid-Sized Vendors List

      1. 9.1.1 Innowise Inc

      2. 9.1.2 Velvetech LLC

      3. 9.1.3 CHI Software

      4. 9.1.4 Edafio Technology Partners

      5. 9.1.5 VLink, Inc.

      6. 9.1.6 Ardem Incorporated

      7. 9.1.7 Unity Communications

      8. 9.1.8 Accedia

      9. 9.1.9 Intersog

      10. 9.1.10 Galaxy Weblinks Inc

      11. 9.1.11 Wave Access USA

      12. 9.1.12 Centricsit

      13. 9.1.13 A3 Logics

      14. 9.1.14 Bottle Rocket LLC

      15. 9.1.15 Premier BPO, LLC

      16. 9.1.16 Sumerge For Information Technology

      17. 9.1.17 Peak Support, LLC

      18. 9.1.18 Progent Corporation

      19. 9.1.19 Sciencesoft Usa Corporation

      20. 9.1.20 Intellectsoft LLC

  10. 10. INVESTMENT ANALYSIS

  11. 11. FUTURE OF THE MARKET

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USA IT Service Market Research FAQs

The United States IT Services Market size is expected to reach USD 217.23 billion in 2023 and grow at a CAGR of 7.10% to reach USD 306.10 billion by 2028.

In 2023, the United States IT Services Market size is expected to reach USD 217.23 billion.

Infosys Limited, Wipro, Microsoft, Accenture and IBM Corporation are the major companies operating in the United States IT Services Market.

IT Service in USA Industry Report

Statistics for the 2023 IT Service in USA market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. IT Service in USA analysis includes a market forecast outlook to 2028 and historical overview. Get a sample of this industry analysis as a free report PDF download.

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