IT SERVICES MARKET: OVERVIEW
The Global IT Services Market Size was valued at USD 1114.22 Billion in 2021 and is expected to reach USD 2554.76 Billion by 2030, growing at a CAGR of 5.8% during 2021-2030.
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Companies are implementing IT services all over the world as a result of the advent of automation, which eliminates tedious tasks, and massive changes in client demand, such as tailored pricing and improved customer experience. The COVID-19 epidemic also put the professional services sector to the test by requiring them to widely utilize remote working and modify their business plans in response to the quickly shifting market conditions. The COVID-19 outbreak has also spurred a number of technological developments across industries. Companies used technology to survive the pandemic by concentrating on resource management and talent recruiting.
Companies are restructuring their business strategies to guarantee they have the necessary skill sets, resources, and tools to gain an advantage in the long run as they prepare for potential problems that may lie ahead. In addition to providing numerous other advantages including improved business processes, precise forecasting, Business Intelligence (BI), IT professional services, decreased resource wastage, and assist firms in locating cost-saving opportunities. Numerous businesses are anticipated to use IT specialists to optimize their operations following the pandemic, further fostering economic expansion.
The impact of COVID-19 has accelerated the affect across different industries. Despite, disruptions in the global supply chain, a lower demand for imported goods and services, and a rise in the unemployment rate are all signs of the negative effects of various containment-related actions. Due to historically low interest rates, significant drops in equity and commodity prices, and heightened risk aversion, the financial market has become more volatile. To improve operations and make work easier throughout the pandemic, organizations have mostly stabilized and improved their infrastructure. High-tech emergency framework systems and agile teams are well-equipped in the virtual war rooms to support challenges, offer appropriate aid, and find resolutions without impeding work.
Another important measure adopted to deal with the virtual working system brought on by COVID-19 is the security of critical processes and systems. Continuous process improvement, regular management of authentication protocols and bug fixes, management of service-level agreements and contracts are a few other delicate, important, and significant aspects that have emerged as a result of the COVID-19's effects on the market or industry for IT services.
IT SERVICES MARKET: TREND
Integration with Advanced Technologies Including Blockchain, AI, IoT Favoring Market Growth
The IT service offerings are likely to be impacted by trends like 5G, AR, Blockchain, and AI. The development of 5G technology will probably make it possible for businesses to install networks on their property. The digital transformation is anticipated to make it possible to either upgrade current networks to LTE or implementation of the latest networks using local frequencies. To enable the autonomy and automation of complex systems, real-time IT locations must be established. Moreover, IoT, AI, and machine learning are gaining traction across the world.
Global IT Services Market Report Coverage
|Market Size in 2021:||USD 1114.22 Billion|
|Forecast Period:||2022 to 2030|
|Forecast Period 2022 to 2030 CAGR:||5.80%|
|2030 Value Projection:||USD 2554.76 Billion|
|Historical Data for:||2017 to 2020|
|No. of Pages:||211|
|Tables, Charts & Figures:||108|
|Segments covered:||By Type, By Deployment, By Organization Size, By Vertical, and By Region|
|Companies Covered:||Citrix Systems Inc., Infosys Limited, Cisco, Dell Inc., IBM Corporation, Hewlett Packard Enterprise Development LP, Microsoft, HCL Technologies Limited, Cognizant, Tata Consultancy Services Limited, Wipro, Toshiba Group, Verizon Communications Inc., FUJITSU|
|Growth Drivers:||Growing Demand for IT Infrastructure Across Enterprises, Increasing Adoption of Cloud-based Deployments|
|Pitfalls & Challenges:||Concerns Pertaining to Lack of Standardization|
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IT SERVICES MARKET: DRIVERS
Growing Demand for IT Infrastructure Across Enterprises
The growing demand for IT infrastructure across enterprises is likely to fuel the growth of the global IT services market. The trend that started with software has shifted to hardware when it comes to consumption-based pricing models and is gaining attention across different businesses. This transition from capital to operational minimal capital, spending lowers risk, and enables flexibility.
Increasing Adoption of Cloud-based Deployments
The increasing adoption of cloud-based deployments will accelerate the IT services by lowering IT costs, better scalability, access to automatic updates, etc., will favor the market growth. Different verticals have started adopting cloud services due to the demand of cloud deployments. Moreover, the data storing capacity is huge than the on-premises deployment. Enterprises are adapting according to client demands in spite using conventional deployments.
IT SERVICES MARKET: RESTRAIN
Concerns Pertaining to Lack of Standardization
IT service performance in organizations depends on a lot of variables and frequently varies with the firms. Similar to people, every business is different, and as a result, uses particular technology to address the individual business solution. As a result, businesses find it challenging to predict the feasibility of IT services based on the success rate of the same technology in other companies due to a lack of standards. Due to shifting business requirements, an increase in security breaches and cyberattacks, and growing data security concerns, it is becoming more and more important to meet regulatory requirements.
The Global IT Services market is segmented by Type (Professional Services [System Integration, Training and Education & Consulting] & Managed Services), By Deployment (On-premise & Cloud-based), By Organization Size (Small and Medium Enterprises & Large Enterprises), By Vertical (BFSI, Telecommunication, Healthcare, Retail, Manufacturing, Government and Others) and Region. Based on the Region, the market is categorized into North America, Europe, Asia-Pacific, Latin America, Middle East and Africa.
Based on type, is managed categorized into professional services (system integration, training and education & consulting) & managed services. The professional services segment is expected to dominate the market share of global IT services market owing to increasing use of project management services by small and medium-sized businesses. These services can also be tailored to an organization's needs in order to fulfil client requests, assisting them in improving operational effectiveness and completing projects on schedule and within the allotted budget. For instance, in October 2020, Twenty5 launched Integrated Project Pricing & Estimating (iPE) application for professional services industry.
Based on deployment, the market is managed categorized into on-premise & cloud-based. The cloud-based segment is expected to dominate the market share of global IT services market owing to increasing adoption of SaaS and PaaS based offerings across enterprises. Firms are shifting their operations to cloud-based systems due to the simplicity of deployment and lower cost of installation. It also aids businesses in enhancing efficiency, responsiveness, accessibility, and scalability, which is fueling the demand for cloud implementation. For instance, TCS have launched cloud solution for subscription-based business models to focus on retaining their customers which will enable to switch to as-a-service models.
MARKET SEGMENTATION: BY REGION
Based on the Region, the Global IT Services Market is categorized into North America, Europe, Asia-Pacific, Latin America, Middle East and Africa.
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North America region is expected to dominate the market share of global IT services market owing to growing adoption of innovation technologies and the presence of major players are few factors which is driving the demand favoring the market region. Adopting emerging technologies like IoT, AI, machine learning (ML), robotics, blockchain, and data science to gain competitive advantage. However, Asia Pacific region is expected to witness highest growth rate during the forecast period of global IT services market due to increasing penetration of smart connected devices and population across the region. Moreover, developing economies like China and India are concentrating on IT development, creating a plethora of prospects for IT professional services throughout APAC. The Asia Pacific area also contains a high number of SMEs; whose everyday operations are primarily dependent on professional services.
IT SERVICES MARKET: KEY PLAYERS
- Citrix Systems Inc.
- Infosys Limited
- Dell Inc.
- IBM Corporation
- Hewlett Packard Enterprise Development LP
- HCL Technologies Limited
- Tata Consultancy Services Limited
- Toshiba Group
- Verizon Communications Inc.
IT SERVICES MARKET: RECENT DEVELOPMENT
- September 2021- Hewlett Packard Enterprise acquired Zerto to manage and protect the data from edge to cloud.
- January 2021- IBM Corporation has collaborated with Atos to enable companies accelerate their digital transformation and enhance business processes.
IT SERVICES MARKET: REPORT OVERVIEW
The scope of the report includes a detailed study of regional markets for Global IT Services Market. The Global IT Services Market is segmented by Type, Deployment, Organization Size, and Region. It reveals the market situation and future forecast. The study also covers the significant data presented with the help of graphs and tables. The report covers information regarding the competitive outlook including the market share and company profiles of the key participants operating in the Global IT Services Market.
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