IT Services - NAFTA

NAFTA

Revenue in the IT Services market is projected to reach US$570.00bn in 2024.
IT Outsourcing dominates the market with a projected market volume of US$215.30bn in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 5.32%, resulting in a market volume of US$738.60bn by 2029.
The average Spend per Employee in the IT Services market is projected to reach US$2.23k 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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Currency

Analyst Opinion

The IT Services market in NAFTA has been experiencing significant growth in recent years, driven by a number of factors such as increasing demand for cloud computing, big data analytics, and cybersecurity solutions.

Customer preferences: Customers in the IT Services market in NAFTA are increasingly looking for innovative solutions that can help them improve efficiency, reduce costs, and enhance their overall performance. This has led to a growing demand for cloud computing services, which offer a range of benefits such as scalability, flexibility, and cost-effectiveness. In addition, customers are also seeking out providers that can offer advanced analytics and data management solutions, as well as cybersecurity services to protect against the growing threat of cyber attacks.

Trends in the market: One of the key trends in the IT Services market in NAFTA is the growing adoption of cloud computing services, which are increasingly being used by businesses of all sizes to improve their IT infrastructure and reduce costs. This trend is being driven by the increasing availability of cloud services, as well as the growing awareness of the benefits that these services can offer. Another trend in the market is the growing demand for big data analytics solutions, which are being used by businesses to gain insights into their operations and make more informed decisions.

Local special circumstances: In the United States, the IT Services market is being driven by the growing demand for cloud computing and cybersecurity solutions, as well as the increasing adoption of artificial intelligence and machine learning technologies. In Canada, the market is being driven by the growing demand for digital transformation solutions, as well as the increasing focus on cybersecurity and data privacy. In Mexico, the market is being driven by the increasing adoption of cloud computing and big data analytics solutions, as well as the growing demand for cybersecurity services.

Underlying macroeconomic factors: The growth of the IT Services market in NAFTA is being driven by a number of underlying macroeconomic factors, including the increasing adoption of digital technologies by businesses, the growing importance of data and analytics in decision-making, and the need for businesses to protect themselves against cyber threats. In addition, the market is also being influenced by broader economic trends such as globalization, urbanization, and demographic shifts, which are creating new opportunities for IT Services providers to expand their operations and reach new customers.

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.