IT Services Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

IT Services Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

IT Services Market is expected to register a CAGR of about 10.36 % during the forecast period 2021-2026. With the onset of COVID-19, the vulnerability of supply chains has been exposed. For most IT organizations, fragile ecosystems included providers of critical IT services. Additionally, work-from-home mandates have led the service providers to ensure that mission-critical enterprise customers have the necessary tools and technologies to enable the speed, security, quality, and overall efficacy of services provided. ​​

Key Highlights

• Enterprises are opting for IT services across multiple industry verticals owing to manifold benefits, such as accurate forecasting through business intelligence, thereby helping to optimize the business operations, minimizing the wastage, and increasing the organizational revenues.
• The increasing dependency on cloud services and infrastructure upgrading activities is significantly driving the demand for managed IT services across the emerging market.
• The growth of IT services is expected to be fueled by the introduction of digitization trends prompting the SMBs and other large enterprises to opt for IT infrastructure, which is further responsible for driving the growth in the adoption of IT operation solutions.
• With the growth of IIoT across the Industry 4.0 platform, IT services are gaining traction within the hybrid IT-managed environment. The usage of AI technology is also extending its application across the areas of the manufacturing and design sector, thereby fueling the market demand, during the forecast period.
• With the onset of COVID-19, the vulnerability of supply chains has been exposed. For most IT organizations, fragile ecosystems included providers of critical IT services. Additionally, work-from-home mandates have led the service providers to ensure that mission-critical enterprise customers have the necessary tools and technologies to enable the speed, security, quality, and overall efficacy of services provided. ​​

Key Market TrendsCloud Services is Gaining Traction Due to Emergence of Cloud-Based Platform

• There had been a significant breakthrough in cloud computing over the past few years, as cloud solutions offer various advantages but expose data hosted to substantial risks, including privacy, identity theft, among others. Organizations adopting cloud computing should consider implementing IT services that can analyze all executions, applications, and network connections.
• Due to advancements in the IT operation across the cloud-based platform, IT services has become more data-driven as well as real-time, creating greater value for the business, especially in the areas of operational efficiency, business opportunity discovery, and remote access optimization.
• As the demand for cloud services is expected to grow over the next few years, with immense demand form the IT & Telecommunication industry across the ever-growing corporate sector, the scope for the IT infrastructure services from these end-users are expected to grow rapidly.

United States to Register Significant Growth During the Forecast Period

• The global IT services market is expanding significantly, and the United States represents one of the major IT markets in the world. The rising adoption of smart technologies and increasing security investment are some of the major factors driving the demand for IT services in the United States.
• Many enterprises in the country have begun adhering to newer methods and processes to gain a competitive advantage, resulting in increasing adoption of emerging technologies, like AI, IoT, machine learning (ML), Blockchain, robotics, and data science. This transformation is developing space for the growth of IT services in the country.
• According to the CompTIA’s Cyberstates 2019 report, the economic impact of the US technology sector exceeded than most of the other industries, including retail, construction, and transportation. Additionally, tech services and software accounted for nearly half of spending in the US technology market, and it is significantly higher than the rate in many other global regions.
• The penetration of smartphones and tablets is increasing in the United States, which is also likely to drive the BYOD policy. This is expected to grow further with the rapid integration of IoT across various industries and sectors. This is projected to propel the adoption and incorporation of managed services, thereby, fueling the growth of the market studied.

Competitive Landscape

The IT services market is highly competitive and consists of a few major players. In terms of market share, some of the players currently dominate the market. However, with the advancement in the IT consultancy services, new players are increasing their market presence thereby expanding their business footprint across the emerging economies.

• March 2020 - IBM partnered with its IT services peers, and it integrated global business services and global technology services capabilities to improve client engagement and increase cloud signings. IBM partnered with Infosys to enable clients’ digital transformations through the IBM public cloud offerings.​

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support

Companies Mentioned

Citrix Systems Inc
Cisco Systems Inc
Dell EMC
IBM Corporation
Hewlett Packard Enterprise
Microsoft Corporation
TCS Limited
Toshiba Corporation
Verizon Communications Inc.
Fujitsu Ltd.

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