IT Professional Services Market Size, Industry Analysis Report, Regional Outlook, Growth Potential, Competitive Market Share & Forecast, 2020 - 2026
Report ID: GMI4062
IT Professional Services Market size will rise substantially in the forthcoming years driven by globalization and technological developments. As globalization is increasing and competition among market players is fueling, organizations are moving toward new markets to expand their customer base. This results in the need for IT expertise among enterprises. To address these challenges, enterprises are outsourcing IT services requirement from third-party service providers. Moreover, as the market dynamics are changing and customers are becoming more empowered, organizations are also changing their business models to meet the requirement of the customers. The enterprises are shifting toward digital channels to deliver their services via internet or mobile application. This is encouraging the enterprises to outsource their IT service requirement and concentrate on their core business competencies.
The widescale adoption of cloud computing also acts as a major force driving the market. As enterprises prefer cloud-based services, it has become easier for IT professional services vendors to deliver services via cloud technology. Effective cost reduction is another major reason for IT professional services market growth. As the overall expenditure and IT infrastructure costs come down, the adoption rate of IT professional services witnesses a rapid increase. Added benefits, such as ease of deployment, better storage management, and higher degree of flexibility, have also caused a surge in market growth. The risks of data breaches, cyber-attacks, shortage of skilled workforce, reductions in free trade, and privacy theft can hinder market growth.
Project-oriented services have dominated the IT professional services market due to the increasing adoption of project management services among small & medium enterprises. These services are often customized to meet individual client needs, helping them to optimize operational efficiency and deliver projects on time within an allocated budget. The IT Outsourcing (ITO) service is also growing due to various advantages such as controlled IT cost, reduced labor cost, increased efficiency & competitiveness, easy deployment of technology, reduced risk, and high security.
On-premise deployment helps reduce dependence on the internet, avoiding data loss and fraud as well as the flexibility of upgrading the IT infrastructure when required. Cloud-based deployment provides better options in terms of operational efficiency and storage management. Cloud-based services, such as IaaS and SaaS, are expected to increase rapidly in the future, leading to growth in cloud-based IT professional services market.
The IT & telecom segment has dominated the IT professional services market as various technological companies are opting for IT professional services to focus on the development of Technology as a Service (TaaS). For example, Netflix uses TaaS from Amazon Web Services (AWS) to store its digital content on a cloud platform, optimizing it for slow internet devices. The marketing & communication segment is also growing as these companies hire IT professional services to integrate cloud-based services into their operations, making use of high data storage capabilities. For instance, Telemax Mobile uses cloud platform services from Teletronics LLP for mobile app solutions.
North America is the leading region in the IT professional services market. The U.S. has the best IT and technology infrastructure in the world, increasing the adoption of IT services in the region. Also, the U.S. government offers the best tax margins for the IT sector, offering around 3% more tax relaxation than the global standards. The presence of major market players, such as Microsoft, IBM, AWS, and Oracle, in the U.S. also augments the market growth in this region. The U.S. has been a leader in outsourcing various business services, accounting for 60% of all services outsourced globally, which has boosted the adoption of IT professional services in this region.
The Asia Pacific IT professional services market is expected to have the highest growth over the forecast period. This can be contributed to global enterprises outsourcing their back-end operations to low-cost Asian economies. As developing economies continue to thrive, the need for knowledge-based professional services is expected to undergo exponential growth. SMEs in the MEA are also expected to depict a sustained increase in the adoption of IT professional services.
The major IT professional services market players are Accenture PLC, Capgemini SA, IBM Corporation, Microsoft Corporation, DXC Technology Company, Fujitsu Limited, Hewlett Packard Enterprise Development LP (HPE), and Oracle Corporation. These firms have adopted key strategies such as mergers & acquisitions and increasing the number of service offerings. For instance, in September 2018, IBM introduced Watson services, which proved to a be breakthrough in the AI sector and in February 2015, Accenture acquired Gaspo to augment its analytics services in Brazil.
IT Professional Services Market, By Type, 2014-2025 (USD Million)
- Project-orient services
- ITO services
- IT supports & training services
- Enterprise cloud computing services
IT Professional Services Market, By Deployment Model, 2014-2025 (USD Million)
IT Professional Services Market, By Application, 2014-2025 (USD Million)
- IT & Telecom
- Marketing & Advertisement
The above information has been provided for the following regions and countries:
- North America
- Asia Pacific
- Australia & New Zealand (ANZ)
- South Korea
- Latin America
- South Africa
- Accenture PLC
- AT&T Inc.
- Atos SE
- Capgemini SE
- Happiest Minds Technologies
- IBM Corporation
- Infosys Limited
- NTT DATA Corporation
- Prodapt Solutions Private Limited
- Tata Consultancy Services (TCS)
- Tech Mahindra Limited
- Vodafone PLC
- Wipro Limited
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