Information Technology Services

Information Technology Services

Brief Excerpt from Industry Overview Chapter:

Companies in this industry provide services such as software support, computer systems design, and data processing facilities management. Major companies include Cognizant, DXC Technology, and the technology consulting arm of IBM (all based in the US), along with Accenture (Ireland); Capgemini (France); and HCL Technologies, Infosys, Tata Consultancy Services, and Wipro (all based in India).

COMPETITIVE LANDSCAPE

Demand for IT services is driven by rapid technological advances, but spending depends on the health of the economy. The profitability of companies depends on technical expertise, innovative services, and effective marketing.
Large companies have advantages in broad service offerings and global reach, which give them the ability to provide outsourcing services to big corporate customers. Small companies can compete effectively by specializing in market niches or by partnering with larger companies that want to broaden their mix of services. The US industry is fragmented: the 50 largest companies account for about 40% of revenue.

PRODUCTS, OPERATIONS & TECHNOLOGY

Major services include customization and integration of packaged software (about 30% of industry revenue), custom software application and design (about 20%), and computer systems design services (about 10%). IT services companies help clients use computers, software, and communications systems more efficiently. In addition to providing advice on using computer systems, they frequently recommend hardware and software systems to their customers. Firms provide a variety of associated services, including business function outsourcing, data warehousing, systems planning, enterprise resource planning, and training.