IT Services

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 United States (US$522.00bn in 2024).

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.

For more information on the data displayed, use the info button right next to the boxes.

IT consulting & implementation, such as Accenture, Hitachi, and Hewlett Packard Enterprise
Business process outsourcing, such as IBM, Infosys, and NTT Data
IT outsourcing, such as Capgemini, Cognizant, and Fujitsu
System integration services, such as Deloitte, CGI, and Tata Consultancy Services
IT training & education, such as Skillsoft, LinkedIn Learning, and NIIT

Infrastructure as a service, such as Microsoft Azure, Alibaba Cloud, and DigitalOcean
Platform as a service, such as Microsoft Azura, Google Cloud, and Engine Yard
Software as a service, such as Oracle Cloud Applications, Google Workspace, and Workday
Support or maintenance of company-owned software products

The IT Services market in North America has been experiencing significant growth in recent years, driven by several factors that have increased demand for IT services across various industries and sectors.

Customer preferences: One of the key drivers of growth in the IT Services market in North America is the increasing demand for cloud-based services. Many companies are moving away from traditional on-premise IT solutions in favor of cloud-based services, which offer greater scalability, flexibility, and cost-effectiveness. Additionally, there is a growing need for cybersecurity services, as companies seek to protect their data and networks from cyber threats and attacks.

Trends in the market: One trend in the North American IT Services market is the increasing adoption of artificial intelligence (AI) and machine learning (ML) technologies. These technologies are being used to improve the efficiency and effectiveness of IT services, as well as to develop new and innovative solutions. Another trend is the growing focus on digital transformation, as companies seek to modernize their IT systems and processes in order to remain competitive in an increasingly digital world.

Local special circumstances: The IT Services market in North America is highly competitive, with many large and established players competing for market share. However, there are also many smaller, niche players that are able to compete by offering specialized services or by focusing on specific industries or sectors. Additionally, the regulatory environment in North America is complex and constantly evolving, which can pose challenges for IT service providers.

Underlying macroeconomic factors: Several macroeconomic factors are driving growth in the North American IT Services market. These include the overall growth of the economy, which has increased demand for IT services across various industries and sectors. Additionally, the increasing prevalence of digital technologies and the growing importance of data have created new opportunities for IT service providers. Finally, the ongoing COVID-19 pandemic has accelerated the shift towards remote work and digital technologies, which has further increased demand for IT services.

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.

This report presents a comprehensive analysis and additional information on the Technology market, in a PDF format.

Unseen yet omnipresent, Information Technology (IT) services are the invisible gears driving modern organizations. These services support business operations and digital transformation through outsourcing, managed services, security, data management, and cloud computing. By leveraging these services, companies enhance efficiency, reduce costs, and gain competitive advantages in a digital marketplace. Prominent cloud providers worldwide include Amazon Web Services, Microsoft Azure, Google Cloud, and Alibaba Cloud. In the managed services sector, Oracle, Accenture, and IBM are among the largest providers globally.