GenAI's Impact on IDC's Services Markets
This IDC Market Perspective addresses the impacts of AI and GenAI on IDC's services markets, allowing service providers to understand the opportunities and challenges in delivering services in the current environment."AI and generative AI will have different impacts on individual services markets, both adding spending for some services and reducing spending for others," said Gard Little, research vice president, Global Services Markets and Trends at IDC. "But IDC believes overall services spending will increase, much as it did with the advent of cloud computing."
Executive Snapshot
New Market Developments and Dynamics
Applications
Application Development and Deployment
System Infrastructure Software and Nonsoftware-Related Markets
Impact of AI/GenAI on IDC's Foundation Markets
Business Consulting
Medium Impact — More Advice Needed on GenAI-Enabled Business Models
IT Consulting
Medium Impact — Faster IT Assessments and More Data Modernization Needs
Systems Integration
High Impact — More Automated Integration and Increased Focus on Data Infrastructure Design
Custom Application Development, Application Management, and Hosted Application Management
High Impact — More Code Automation and Increased Insights
Network Consulting and Integration
High Impact — Increased Automation of Integration; Requirement for High-Speed Low-Latency Networks to Enable AI/GenAI Use Cases
Business Process Outsourcing
Medium Impact — More Automation and AI-Based Process Improvements
IT, Network, and Endpoint Outsourcing Services
High Impact — More Substitution from Cloud Service Providers
Hosting Infrastructure Services
Medium Impact — More Task Automation and Compute Infrastructure
Hardware Deploy and Support
High Impact — More Automation and Better Data-Based Diagnostics and Resolution
Software Deploy and Support
Medium Impact — Improved Reactive Support, More Predictive/Preventive Capabilities, and Better Self-Service Support
IT Education and Training
High Impact — GenAI to Enhance Training Development and Delivery
Digital Engineering and Operational Technology Services
Medium Impact — More Automation and Faster Solution Development
Security Services
Medium Impact — More Sophisticated Support for Securing GenAI and Adopting GenAI-Enabled Solutions
Advice for the Services Provider
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Related Research
Synopsis
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