IT Services - Worldwide

Worldwide

The IT Services market is poised for a significant revenue surge, with projected revenue of US$1,420.00bn in 2024.
Within this market, IT Outsourcing is set to dominate with a projected market volume of US$541.10bn in the same year.
Furthermore, the annual growth rate (CAGR 2024-2029) is expected to be 5.76%, resulting in a market volume of US$1,879.00bn by 2029.
As for the average Spend per Employee in the IT Services market, it is projected to reach US$399.00 in 2024.
In terms of global comparison, the United States is expected to generate the highest revenue, reaching US$522.00bn in 2024.
The United States leads the worldwide IT Services market with a strong emphasis on cloud computing and digital transformation initiatives.

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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Analyst Opinion

The IT Services market has been rapidly growing in recent years, with a significant increase in demand for technology services worldwide.

Customer preferences: Customers are increasingly seeking technology solutions that can help them improve their business operations and increase efficiency. Cloud computing, cybersecurity, and artificial intelligence are among the most popular services that customers are seeking. Additionally, customers are also looking for IT services that can help them adapt to the changing business environment and stay competitive in the market.

Trends in the market: In the United States, the IT Services market is expected to grow due to the increasing adoption of cloud computing and the rise of digital transformation. The healthcare and financial sectors are among the industries that are driving this growth. In Europe, the IT Services market is expected to grow due to the increasing demand for cybersecurity services and cloud computing. Germany and the United Kingdom are among the countries that are driving this growth. In the Asia-Pacific region, the IT Services market is expected to grow due to the increasing adoption of digital technologies and the rise of e-commerce. China and India are among the countries that are driving this growth.

Local special circumstances: In Japan, the IT Services market is expected to grow due to the increasing demand for digital transformation services. The government's push for digitalization and the need to improve business operations are among the factors driving this growth. In the Middle East, the IT Services market is expected to grow due to the increasing adoption of cloud computing and the rise of e-government initiatives. The United Arab Emirates and Saudi Arabia are among the countries that are driving this growth. In Latin America, the IT Services market is expected to grow due to the increasing demand for cybersecurity services and the rise of digital transformation. Brazil and Mexico are among the countries that are driving this growth.

Underlying macroeconomic factors: The increasing adoption of digital technologies, the rise of e-commerce, and the need to improve business operations are among the macroeconomic factors driving the growth of the IT Services market. Additionally, the increasing demand for cloud computing and cybersecurity services is also contributing to the growth of the market. The COVID-19 pandemic has also accelerated the adoption of digital technologies, leading to an increase in demand for IT services. However, the shortage of skilled IT professionals and the increasing competition in the market are among the challenges that the IT Services industry is facing.

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.