IT Services - Americas

Americas

Revenue in the IT Services market is projected to reach US$608.70bn in 2024.
IT Outsourcing dominates the market with a projected market volume of US$227.00bn in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 5.35%, resulting in a market volume of US$789.80bn by 2029.
The average Spend per Employee in the IT Services market is projected to reach US$1,208.00 in 2024.
In global comparison, most revenue will be generated in the United States (US$522.00bn in 2024).

Key regions: United States, China, India, Japan, Germany

Definition:
The IT Services market encompasses a wide range of services used by organizations to create, manage, and deliver information, and it includes services that provide assistance with various other business functions. The primary goal of IT services is to ensure that information technology infrastructure, applications, and systems are effectively implemented, operated, and optimized to support an organization's business objectives and requirements. The specific range of services offered may vary depending on the service provider and the client's requirements.

Structure:

IT Services contains four distinct markets that are based on different services:

IT Consulting & Implementation covers advisory services that help businesses evaluate their technology strategies and align them with their business strategies or internal processes.
Business Process Outsourcing (BPO) refers to the transfer of entire business processes or individual activities from a company to a third party and is often IT based. BPO covers a wide variety of business processes, usually either in the back office (e.g., human resources) or in the front office (e.g., customer service in call centers).
IT Outsourcing refers to the external contracting of all IT-related services instead of relying on company-owned resources. In an IT context, these activities include IT administration, IT application, and web hosting services.
The Other IT Services market covers revenues for areas that are not specifically mentioned in the other markets, such as system integration, software installation and support, and IT education and training.

Additional Information:

The IT Services market comprises revenues, revenue change, average spend per employee, and a list of the key players in the market and their consolidated revenues. Market values represent revenues that are generated by primary vendors either directly or through distribution channels at the manufacturer price level (excluding VAT). Reported market revenues include spending by enterprises (B2B) and governments (B2G). Detailed definitions of each market can be found on the respective page where the market data is displayed. Key players in the market include IBM, Cognizant, Hewlett Packard Enterprise, and TCS.

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Market

Region

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Analyst Opinion

The IT Services market in Americas is a rapidly growing sector that is constantly evolving to meet the needs of customers and businesses alike.

Customer preferences: Customers in the Americas are increasingly looking for IT services that are tailored to their specific needs. This means that businesses are having to adapt to meet these demands, offering more personalized services that cater to individual customers. In addition, customers are placing a greater emphasis on security and data protection, which is driving demand for cybersecurity services.

Trends in the market: One trend that is driving growth in the IT Services market in the Americas is the increasing adoption of cloud computing. This is allowing businesses to access IT services on a pay-as-you-go basis, which is more cost-effective and flexible than traditional IT infrastructure. Another trend is the rise of artificial intelligence and machine learning, which is enabling businesses to automate many of their processes and improve efficiency.

Local special circumstances: There are a number of factors that are driving growth in the IT Services market in the Americas. For example, the region has a large and growing population of tech-savvy consumers who are increasingly reliant on digital services. In addition, the Americas is home to a large number of multinational corporations, many of which are investing heavily in IT services to stay competitive.

Underlying macroeconomic factors: There are a number of macroeconomic factors that are driving growth in the IT Services market in the Americas. For example, the region has a strong and stable economy, which is creating a favorable environment for businesses to invest in IT services. In addition, the Americas has a highly skilled workforce, which is driving innovation and enabling businesses to develop new and innovative IT solutions. Finally, the region has a well-developed infrastructure, which is making it easier for businesses to access the IT services they need to succeed.

Methodology

Data coverage:

The data encompasses B2G, B2B, and B2C enterprises. Figures are based on enterprises' technology spending on products, consulting, and outsourcing services.

Modeling approach / Market size:

Market sizes are determined through a combined top-down and bottom-up approach, building on a specific rationale for each market segment. As a basis for evaluating markets, we use annual financial reports of key players in the industry, Statista's primary research and surveys, and IT associations. In addition, we use relevant key market indicators and data from country-specific associations, such as GDP, internet users, and telecommunication. This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, the exponential trend smoothing method is used based on the market data characteristics. The main drivers are the GDP and its sector composition, internet penetration, the level of digitization, and the attitude toward IT security.

Additional notes:

The data is modeled using current exchange rates. The market is updated twice a year in case market dynamics change. The impact of the COVID-19 pandemic and the Russia-Ukraine war is considered at a country-specific level.