IT Services Market size to grow by USD 402.79 billion from 2022 to 2027, IT consulting and other services segment to be significant for the market growth -Technavio
NEW YORK, April 19, 2023 /PRNewswire/ -- The IT services market is estimated to grow by USD 402.79 billion from 2022 to 2027. However, the growth momentum will be progressing at a CAGR of 5.57% during the forecast period. The market is segmented by service (IT consulting and other services, internet services and infrastructure, and data processing and outsources services), end-user (technology and telecommunication, BFSI, travel and hospitality, healthcare, and others), and geography (APAC, North America, Europe, South America, and Middle East and Africa).
The market share growth by the IT consulting and other services segment will be significant for the market growth during the forecast period. The segment primarily consists of services such as consulting, systems integration, information management, and education and training. Consulting services are advisory services that help clients evaluate different technology and methodology strategies. This helps clients in making it easier for their network strategies to be aligned with their business or process strategies. Consulting services provide strategic, architectural, operational, and implementation planning for customers' networks in support of their IT initiatives. Moreover, the developments in IT consulting services made by significant vendors like Microsoft aids the adoption of IT consulting service operating models. The growing adoption of edge data centers notably drives market growth. The rapid adoption of cloud service as well as an increase in the volume, accuracy, variety, and velocity of data generated by businesses are driving up demand for edge data centers.
Vendors: 15+, Including Accenture Plc, Cognizant Technology Solutions Corp., Dell Technologies Inc., DXC Technology Co., Fujitsu Ltd., HCL Technologies Ltd., Hewlett Packard Enterprise Co., Huawei Technologies Co. Ltd., Infosys Ltd., International Business Machines Corp., LTIMindtree Ltd., Microsoft Corp., Nokia Corp., Oracle Corp., Tata Consultancy Services Ltd., Tech Mahindra Ltd., Telefonaktiebolaget LM Ericsson, Toshiba Corp., Wipro Ltd., and Zunesis Inc., among others
Coverage: Parent market analysis; key drivers, major trends, and challenges; customer and vendor landscape; vendor product insights and recent developments; key vendors; and market positioning of vendors
Segments: Service (IT consulting and other services, Internet services and infrastructure, and Data processing and outsources services), End-user (Technology and telecommunication, BFSI, Travel and hospitality, Healthcare, and Others), and Geography (APAC, North America, Europe, South America, and Middle East and Africa)
The growing competition in the market is compelling vendors to adopt various growth strategies such as promotional activities and spending on advertisements to improve the visibility of their services. Technavio report analyzes the market's competitive landscape and offers information on several market vendors including Accenture Plc, Cognizant Technology Solutions Corp., Dell Technologies Inc., DXC Technology Co., Fujitsu Ltd., HCL Technologies Ltd., Hewlett Packard Enterprise Co., Huawei Technologies Co. Ltd., Infosys Ltd., International Business Machines Corp., LTIMindtree Ltd., Microsoft Corp., Nokia Corp., Oracle Corp., Tata Consultancy Services Ltd., Tech Mahindra Ltd., Telefonaktiebolaget LM Ericsson, Toshiba Corp., Wipro Ltd., and Zunesis Inc.
IT Services Market ? Market Dynamics
Major Trends -
An emerging trend in the IT services market that is expected to drive market growth is the emergence of AI in information management.
Globally, various businesses incorporate AI in order to develop and utilize IT service data. The integration of AI in information services makes it easier to automate numerous processes and increases process effectiveness.
Additionally, administrative duties account for half of the work done by employees in businesses, which raises business expenses and lowers Return on Investment (ROI). This results in companies choosing IT services that use cutting-edge technologies like AI.
AI is also used to tag and categorize data, in turn making it simpler to find data or information in the future. Some other advantages include applying structure to unstructured data, streamlining information, enhancing information security, and improving data quality.
Hence, these benefits of AI are expected to boost the global market growth during the forecast period.
Key challenges -
A major challenge hindering the growth of the IT services market are the risks involved in outsourcing.
Businesses outsourcing front, middle, or back-office tasks become overly reliant on the contracted firm, which results in a loss of control because the contracted company might place unreasonable demands or change the company's operating procedures. The most likely outcome for this would be high levels of organizational dissatisfaction.
Another major risk is the loss of sensitive data, lose of control over their financial and supply chain operations because they may no longer be able to function independently.
To deliver the required service on time, effective customer communication is essential for service providers. Clients and vendors must stay in touch in order to reduce outsourcing risks and establish trust for the duration of a procurement contract.
Thus, such factors can pose a challenge to the growth of the market during the forecast period.
The IT services market report provides critical information and factual data, with a qualitative and quantitative study of the market based on market drivers and limitations as well as future prospects. Drivers, & Challenges have an impact on market dynamics and can impact businesses. Find some insights from a sample report!
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What are the key data covered in this IT services market report?
CAGR of the market during the forecast period
Detailed information on factors that will drive the growth of the IT services market between 2023 and 2027
Precise estimation of the size of the IT services market and its contribution to the market with a focus on the parent market
Accurate predictions about upcoming trends and changes in consumer behavior
Growth of the IT Services Market across APAC, North America, Europe, South America, and Middle East and Africa
A thorough analysis of the market's competitive landscape and detailed information about vendors
Comprehensive analysis of factors that will challenge the growth of IT Services Market vendors
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IT Services Market Scope
Report Coverage
Details
Base year
2022
Historic period
2017-2021
Forecast period
2023-2027
Growth momentum & CAGR
Accelerate at a CAGR of 5.57%
Market growth 2023-2027
USD 402.79 billion
Market structure
Fragmented
YoY growth 2022-2023 (%)
5.02
Regional analysis
APAC, North America, Europe, South America, and Middle East and Africa
Performing market contribution
APAC at 49%
Key countries
US, China, Japan, UK, and Germany
Competitive landscape
Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks
Key companies profiled
Accenture Plc, Cognizant Technology Solutions Corp., Dell Technologies Inc., DXC Technology Co., Fujitsu Ltd., HCL Technologies Ltd., Hewlett Packard Enterprise Co., Huawei Technologies Co. Ltd., Infosys Ltd., International Business Machines Corp., LTIMindtree Ltd., Microsoft Corp., Nokia Corp., Oracle Corp., Tata Consultancy Services Ltd., Tech Mahindra Ltd., Telefonaktiebolaget LM Ericsson, Toshiba Corp., Wipro Ltd., and Zunesis Inc.
Market dynamics
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period
Customization purview
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized.
Exhibit 189: Telefonaktiebolaget LM Ericsson - Overview
Exhibit 190: Telefonaktiebolaget LM Ericsson - Business segments
Exhibit 191: Telefonaktiebolaget LM Ericsson - Key news
Exhibit 192: Telefonaktiebolaget LM Ericsson - Key offerings
Exhibit 193: Telefonaktiebolaget LM Ericsson - Segment focus
12.17 Toshiba Corp.
Exhibit 194: Toshiba Corp. - Overview
Exhibit 195: Toshiba Corp. - Business segments
Exhibit 196: Toshiba Corp. - Key news
Exhibit 197: Toshiba Corp. - Key offerings
Exhibit 198: Toshiba Corp. - Segment focus
13 Appendix
13.1 Scope of the report
13.2 Inclusions and exclusions checklist
Exhibit 199: Inclusions checklist
Exhibit 200: Exclusions checklist
13.3 Currency conversion rates for US$
Exhibit 201: Currency conversion rates for US$
13.4 Research methodology
Exhibit 202: Research methodology
Exhibit 203: Validation techniques employed for market sizing
Exhibit 204: Information sources
13.5 List of abbreviations
Exhibit 205: List of abbreviations
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Technavio is a leading global technology research and advisory company. Their research and analysis focuses on emerging market trends and provides actionable insights to help businesses identify market opportunities and develop effective strategies to optimize their market positions. With over 500 specialized analysts, Technavio's report library consists of more than 17,000 reports and counting, covering 800 technologies, spanning across 50 countries. Their client base consists of enterprises of all sizes, including more than 100 Fortune 500 companies. This growing client base relies on Technavio's comprehensive coverage, extensive research, and actionable market insights to identify opportunities in existing and potential markets and assess their competitive positions within changing market scenarios.
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