Global IT Services Market Size, Share & Industry Trends Analysis Report By Type, By Enterprise Size, By Industry (BFSI, Telecommunication, Healthcare, Retail, Manufacturing, Government), By Regional Outlook and Forecast, 2022 - 2028
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Get in-depth analysis of the COVID-19 impact on the IT Services Market
Market Report Description
The Global IT Services Market size is expected to reach $2,013.6 billion by 2028, rising at a market growth of 8.4% CAGR during the forecast period.
In addition to assisting with other business operations, corporations employ information technology (IT) services to create, manage, and deliver information. Services include hardware deployment, training, consulting, software development, and systems integration. Outsourcing, managed services, security services, data management, and cloud computing are some of the areas that make up the overall market for IT services.
Generally, an industry company's profitability depends on its capacity to develop its technical know-how and improve its services. Both smaller and larger businesses can compete in this sector. While larger businesses tend to offer a wider range of services and have a global presence, smaller businesses typically target specialized markets and cater their products more closely to the demands of their target audiences.
Cloud computing, which stimulates IT-related innovation, is the section of IT services that are developing at the fastest rate. Some IT services, such as hardware installation, support, and maintenance, are frequently outsourced on demand since they frequently involve replacing or repairing out-of-date equipment.
Consumer hardware will be properly disposed of by a qualified provider, who will also format hard drives to remove all potentially sensitive data. Computers, hard drives, printers, modems, and routers that the company needs to run smoothly are typically installed by IT departments. On the other hand, there is a constant need for repairs anywhere there is a ton of hardware equipment. Error troubleshooting is a part of the repair.
COVID-19 Impact Analysis
In recent years, the interconnection of the global economy has increased substantially. Indicators of the negative effects of various containment-related actions such as Disruptions in the global supply chain, a decline in demand for imported products and services, and an increase in the unemployment rate. The financial market has grown more volatile as a result of historically low-interest rates, huge decreases in equity and commodity prices, and heightened risk aversion. Most organizations have stabilized and enhanced their infrastructure to improve operations and facilitate operations during the pandemic.
Market Growth Factors
Demand for cloud-based it services is growing
The majority of businesses and industries have replaced on-premises software with cloud-based software. The cloud-based software enables access to all enterprise applications at a reasonable cost and without requiring a significant initial investment in software or hardware. Similarly, the adoption of cloud computing facilitates the expansion and contraction of commercial operations. Consequently, cloud-based IT services have become a more advantageous and cost-effective option for SMBs in recent years. In addition, cloud computing provides SMBs with new business possibilities and opportunities.
Increased Investment Return With Reduced Infrastructure And Storage Costs
The initial implementation and ongoing costs of hosting data on-premises are a problem for businesses. In addition, labor expenses and downtime difficulties are additional challenges for businesses. Existing rivalry and global economic conditions have hastened the adoption of cost-effective business model restructuring strategies. Increasing enterprise embrace of digital transformation and speeding customer experience are other drivers driving the growth of cloud computing services, which eventually reduce enterprise costs.
The leading players in the market are competing with diverse innovative offerings to remain competitive in the market. The below illustration shows the percentage of revenue shared by some of the leading companies in the market. The leading players of the market are adopting various strategies in order to cater demand coming from the different industries. The key developmental strategies in the market are Partnerships & Collaborations.
Market Restraining Factors
The effectiveness of IT services in businesses depends on a variety of criteria and varies significantly between firms. Similarly, each organization is unique and, as a result, utilizes specialized technologies to satisfy its distinct business needs. Due to the lack of standardization, it is difficult for businesses to assess the viability of IT services based on the success rate of the same technology in another organization. A typical IT service setup may cost up to $75 to $300 per user. Insufficient IT services may therefore place a significant cost strain on enterprises.
Based on the Type, the IT Services Market is segmented into Security Outsourcing, IT Support, Managed Security Services, Systems and Network Implementations, and Security Strategy and Planning. The security outsourcing segment witnessed a significant revenue share in the IT services market in 2021. The prevalence of cyberattacks, which is constantly rising, is a major worry for business owners everywhere. In-house IT security is more expensive than security outsourcing. As a result, small and medium-sized organizations typically choose to contract out their security needs.
On the basis of Industry, the IT Services market is segmented into BFSI, Telecommunication, Healthcare, Retail, Manufacturing, Government, and Others. The Telecommunication segment recorded a substantial revenue share in the IT services market in 2021. Communication service providers were confronted with pertinent issues associated with the optimization of an existing company and the hunt for new niches to offer innovative services. The market shifts fundamentally owing to alterations in the nature and methods of providing new services.
Organization Size Outlook
By organization size, the IT Service Market is divided into Large Enterprises and Small & Medium Enterprises. The small & medium enterprises segment registered a significant revenue share in the IT services market in 2021. It improves small businesses' competitiveness, operational efficiency, and growth. Internationally, company executives are placing a larger focus on the adoption of information technology to develop dynamic capabilities.
|Market size value in 2021||USD 1137.1 Billion|
|Market size forecast in 2028||USD 2013.6 Billion|
|Historical Period||2018 to 2020|
|Forecast Period||2022 to 2028|
|Revenue Growth Rate||CAGR of 8.4% from 2022 to 2028|
|Number of Pages||268|
|Number of Tables||404|
|Report coverage||Market Trends, Revenue Estimation and Forecast, Segmentation Analysis, Regional and Country Breakdown, Competitive Landscape, Market Share Analysis, Companies Strategic Developments, Company Profiling|
|Segments covered||Type, Enterprise Size, Industry, Region|
|Country scope||US, Canada, Mexico, Germany, UK, France, Russia, Spain, Italy, China, Japan, India, South Korea, Singapore, Malaysia, Brazil, Argentina, UAE, Saudi Arabia, South Africa, Nigeria|
Region-wise, the IT Services Market is analyzed across North America, Europe, Asia Pacific, and LAMEA. The Asia pacific segment acquired a promising growth rate in the IT services market in 2021. The increase in IT service spending by businesses in the Asia Pacific region coincides with COVID-19 accelerating digital transformation and the shift to the cloud and a record-high level of demand for IT services globally. The majority of businesses in the Asia Pacific region have expanded their investments in cutting-edge technology to quickly implement and respond to market changes.
Free Valuable Insights: Global IT Services Market size to reach USD 2013.6 Billion by 2028
KBV Cardinal Matrix - IT Services Market Competition Analysis
The major strategies followed by the market participants are Partnerships. Based on the Analysis presented in the Cardinal matrix; Accenture PLC and IBM Corporation are the forerunners in the IT Services Market. Companies such as Tata Consultancy Services Ltd., Infosys Limited and Capgemini SE are some of the key innovators in IT Services Market.
The market research report covers the analysis of key stake holders of the market. Key companies profiled in the report include Microsoft Corporation, Accenture PLC, Tata Consultancy Services Ltd., Cognizant Technology Solutions Corporation, Wipro Limited, HCL Technologies Ltd. (HCL Enterprises), Capgemini SE, IBM Corporation, Infosys Limited, DXC Technology Company, and NTT Data Corporation.
Strategies deployed in IT Services Market
» Partnerships, Collaborations and Agreements:
- Oct-2022: DXC Technology formed a partnership with Dynatrace, which provides a software intelligence platform based on artificial intelligence and automation. Under this partnership, Dynatrace Software Intelligence Platform would become the selected DXC Platform X software for monitoring and artificial intelligence-powered automated management of a consumer's IT estate. Moreover, the addition of Dynatrace, with its cooperative and smart view across software products and technologies, helps reinforce predictive AIOps abilities and drive cost optimization.
- Oct-2022: Capgemini joined hands with Microsoft Corporation, an American multinational technology corporation. Together, the companies aimed to provide a first-of-its-kind, serverless, cloud-native, Azure-based digital twin platform, known as ReflectIoD. Additionally, ReflectIoD is a safe, highly scalable platform that would utilize best-in-class architecture and technological features from the Azure portfolio to assist transform an organization’s procedures and maintenance effectiveness, allowing intelligent industry and operating sustainable business value.
- Oct-2022: Accenture partnered with Google Cloud, an American multinational technology company. This partnership aimed to increase their respective talent, increase their joint abilities, create new solutions utilizing data and AI, and deliver improved support to help customers build a strong digital core and reimagine their companies on the cloud. Moreover, Cloud presents boundless opportunities for companies to be more creative and resilient.
- May-2022: NTT DATA joined hands with NTT, a completely owned subsidiary of Nippon Telegraph and Telephone Corporation. Through this collaboration, the companies aimed to integrate their system connectivity capabilities with NTT Ltd.’s ‘Edge to Cloud’ service operation abilities. Moreover, the integration would allow the business to combine IT services and Connectivity and react to increasingly complicated and various client needs on a global level by centrally creating a service offering necessary for digital transformation.
- May-2022: IBM joined hands with Amazon Web Services, which provides on-demand cloud computing platforms. Through this collaboration, the companies aimed to provide IBM Software-as-a-Service on AWS. However, the presence of the IBM SaaS portfolio on AWS would permit businesses to concentrate on providing clients value without concern about IT infrastructure management, allowing innovation at a faster clip.
- Mar-2022: Cognizant joined hands with Microsoft, a technology corporation creating computer software. Through this collaboration, Cognizant aimed to improve its Multiphase Solutions Rollout, helping its expanding healthcare practice and capability to modernize payers and suppliers with digital abilities.
- Mar-2022: HCL Technologies signed an agreement with NEORIS, a global digital accelerator that co-creates disruptive solutions. This agreement would bring special abilities to customers in global markets, including the capabilities to improve application utilization time, business management operations, and combined IT services. Additionally, the companies aimed to boost up digital transformation, reduce risks, assign teams based on product development, develop a zero-incident culture and save expenses.
- Feb-2022: HCL Technologies partnered with VMware, an American cloud computing and virtualization technology company. This partnership would expand its Cloud Smart portfolio of services powered by VMware technology to include support for VMware Telco Cloud – 5G Core and VMware Telco Cloud RAN. Moreover, this collaboration would provide combined solutions for service providers across the world.
- Dec-2021: NTT DATA teamed up with AWS, a subsidiary of Amazon. Together the companies aimed to utilize their proven track record and high delivery abilities in Japan to establish a supreme position in digital business, advance their enterprise on a global scale, and contribute to business development for their clients. Moreover, NTT DATA would reinforce a framework to support customers that consider shifting their IT infrastructure to the cloud.
- Nov-2021: Wipro Limited came into a partnership with TEOCO, a privately owned telecom software vendor. Through this partnership, the companies aimed to create solutions that help communication service providers (CSPs) enhance network automation, efficiency, flexibility, and dependability. Moreover, TEOCO would help CSPs create a cooperative process to ensure service quality, network performance, and defect management, eventually allowing the rapid adoption of next-generation services.
- Dec-2021: Wipro partnered with HERE Technologies, the location data, and the technology platform. This partnership would deliver location-based services, to customers from Telecom, Energy & Utilities, Transport & Logistics, Manufacturing, and Automotive industry verticals.
- Nov-2020: Tata Consultancy Services came into a partnership with Zoho, a developer of web-based business tools. This partnership aimed to deliver premium IT Service Management, Customer Relationship Management, and e-Commerce solutions to solve issues for large companies. Additionally, Partnership would deliver end-to-end business solutions to global businesses and mid-market enterprises.
- Jun-2020: NTT DATA joined hands with Microsoft, an American multinational technology corporation. Under this collaboration, companies aimed to combine NTT DATA’s best-in-class global IT services with Microsoft’s authorized cloud platform, AI technologies, and offering of productivity tools aimed at supporting business digitally transform, growing efficiencies of business productivity and procedures.
» Product Launches and Product Expansions:
- Mar-2022: HCL Technologies introduced Quality of Experience (QoE) and Energy Savings applications, new 5G applications to help mobile network operators optimize the customer experience. The applications improve network performance in places with high traffic congestion, such as city centers and large sporting events, HCL’s QoE application enables mobile network operators to deliver seamless, fast, and dependable 5G services, by utilizing artificial intelligence (AI). Additionally, HCL’s Energy Savings application decreases the operating costs of providing 5G, utilizing AI-based network automation abilities.
- Dec-2021: Wipro introduced VisionEDGE Solution, a digital signage and omnichannel ad solution. The Wipro VisionEDGE delivers a centralized platform for innovation and enables brands to control and stream content to heighten consumer attention. Moreover, Wipro VisionEdge would utilize the potential of Wipro FullStride Cloud Services to provide customers the capability to unlock new enterprise value from their brand belongings and develop new income streams.
- Apr-2021: IBM introduced revamped model ESS 5000, the IBM Elastic Storage System (ESS) family of high-performance solutions that are highly flexible and developed for easy deployment. The ESS 5000 provides 10% greater storage ability and the new ESS 3200 which delivers dual the read performance of its prototype.
» Mergers & Acquisition
- Oct-2022: Accenture completed the acquisition of Stellantis, World Class Manufacturing Training & Consulting Business. This acquisition would reinforce Accenture’s abilities in business process optimization. Additionally, the acquisition permits Accenture to combine the World Class Manufacturing (WCM) process in its solutions that permit clients to convert their manufacturing process and supply chain networks to be more endurable, efficient, and robust.
- Sep-2022: Accenture took over The Beacon Group, a growth strategy consulting firm serving Fortune 500 corporations. This acquisition would enhance Accenture’s abilities that permit C-suite leaders to make fact-based conclusions for segmentation, targeting, and ways to growth powered by market insights and flexible solutions to manage enterprise transformations at scale.
- Sep-2022: IBM completed the acquisition of Dialexa, a foremost digital product engineering consulting service. This acquisition would improve IBM's hybrid cloud and AI abilities, and boost growth for customers. However, the acquisition is expected to enhance IBM's product engineering expertise and provide end-to-end digitalization services for consumers.
- Apr-2022: NTT DATA completed the acquisition of Business Services and Technologies OOD, one of the foremost SAP service providers. This acquisition aimed to improve flexibility and scalability in international shoring systems in consulting and managed services and highlight the claim of multinational capacities, and local proximity. Under this acquisition, NTT is developing its shoring portfolio in the European Union.
- Feb-2022: IBM completed the acquisition of Neudesic, a foremost U.S. cloud services consultancy. This acquisition would significantly expand IBM's offering of hybrid multi-cloud services and further enhance the company's hybrid cloud and AI strategy. Moreover, Neudesic brings deep Azure data engineering, cloud, and data analytics expertise to boost customers' hybrid cloud journeys.
- Mar-2021: Accenture acquired REPL Group, a U.K.-based technology consultancy. This acquisition aimed to expand Accenture’s abilities that help customers across retail and adjacent industries transform their supply chains and procedures and provide seamless consumer and employee experiences. Moreover, REPL utilizes its deep retail expertise, along with cutting-edge technology skills, to support global businesses and provide sustainable value.
- Mar-2020: Infosys completed the acquisition of Simplus, one of the fastest-growing Salesforce Platinum Partners. Under this acquisition, Infosys further advances its standing as an end-to-end Salesforce enterprise cloud services and solutions provider, delivering clients unparalleled abilities for cloud-first digital transformation.
Scope of the Study
Market Segments Covered in the Report:
- Managed Security Services
- Security Outsourcing
- IT Support
- Systems & Network Implementations
- Security Strategy & Planning
By Enterprise Size
- Large Enterprises
- Small & Medium Enterprises
- North America
- Rest of North America
- Rest of Europe
- Asia Pacific
- South Korea
- Rest of Asia Pacific
- Saudi Arabia
- South Africa
- Rest of LAMEA
Key Market Players
List of Companies Profiled in the Report:
- Microsoft Corporation
- Accenture PLC
- Tata Consultancy Services Ltd.
- Cognizant Technology Solutions Corporation
- Wipro Limited
- HCL Technologies Ltd. (HCL Enterprises)
- Capgemini SE
- IBM Corporation
- Infosys Limited
- DXC Technology Company
- NTT Data Corporation
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What would be the size of the IT Services Market by 2028?
The global IT Services Market size is expected to reach $2,013.6 billion by 2028.
What are the key driving factors and challenges in the IT Services Market?
Demand for cloud-based it services is growing are driving the market in coming years, however, Insufficient Standardization restraints the growth of the market.
What are the major top companies in the competitive landscape?
Microsoft Corporation, Accenture PLC, Tata Consultancy Services Ltd., Cognizant Technology Solutions Corporation, Wipro Limited, HCL Technologies Ltd. (HCL Enterprises), Capgemini SE, IBM Corporation, Infosys Limited, DXC Technology Company, and NTT Data Corporation.
At what CAGR is the IT Services Market estimate to grow in the forecast period?
The expected CAGR of the IT Services Market is 8.4% from 2022 to 2028.
Which segment shows a high revenue share of the IT Services Market in 2021?
The Large Enterprises segment acquired maximum revenue share in the Global IT Services Market by Enterprise Size in 2021 thereby, achieving a market value of $1,372.4 Billion by 2028.
Which region dominated the IT Services Market in 2021?
The North America market dominated the Global IT Services Market by Region in 2021, and would continue to be a dominant market till 2028; thereby, achieving a market value of $732.9 Billion by 2028.