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The IT professional services market size is forecast to increase by USD 461.56 billion at a CAGR of 9.09% between 2022 and 2027. Market expansion hinges on various factors, notably the accelerating pace of digital transformation across industries. This trend drives demand for innovative solutions and assistance to support organizations in their journey toward digitalization. Additionally, there is a significant shift towards cloud-based benefits and infrastructure as businesses seek scalable and flexible IT solutions to meet their evolving needs. This migration to the cloud is fueled by the benefits of cost savings, improved agility, and enhanced accessibility to advanced technologies. Moreover, the growing IT industry in developing regions further contributes to market growth as businesses in these areas increasingly adopt digital solutions to drive efficiency and competitiveness. Together, these factors create a conducive environment for the continued expansion of the market, with opportunities for technology providers and service companies to capitalize on the evolving needs of businesses worldwide.
In the dynamic landscape of the market, firms prioritize meeting client demand and enhancing customer demand while optimizing operational efficiency. With the prevalence of remote working, businesses focus on effective expense management and resource allocation to deliver top-notch project management solutions. Revenue optimization and strong organization play pivotal roles in meeting diverse business strategies and ensuring success in this competitive sector.
The market share growth by the project-oriented services segment will be significant during the forecast period. Project-oriented services within the market involve the delivery of IT services on a project basis, typically with a defined scope, timeline, and set of deliverables. In order to meet the specific client needs, these services are provided in a way that takes into account special business requirements. Organizations often engage IT service providers for project-oriented assistance when they require specialized expertise, resources, and technical skills for a specific IT initiative.
The project-oriented services segments showed a gradual increase in the market share of USD 254.33 billion in 2017. Project-oriented services can help organizations in several ways, including scope management, revenue management, creating better quotes, resource management, and efficient project delivery. Project-oriented services shall include timely maintenance, modernization, project installation, and decommissioning. These are the main elements influencing segment demand, which is expected to drive the growth of the market in focus on the segment during the forecast period.
Based on end-user, the market has been segmented into large enterprises, small, and medium enterprises. Large enterprises form a significant segment within the market, characterized by their extensive scale, complex operations, and substantial IT infrastructure. They usually have a significant number of employees, are operating in more than one location or unit, and require extensive IT solutions and services to support their business activities. Providers offer a broad range of assistance and expertise in response to the specific needs of large enterprises. These businesses enter long-term contracts with providers of professional services automation software in order to lower software costs and give their staff members quick access to IT professional benefits solutions. The growing use of IT professional assistance in large enterprises will drive the growth of the market in focus on the large enterprises segment during the forecast period.
North America is estimated to contribute 37% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. As an early adopter of advanced technologies in the manufacturing, retail, and financial services industries, North America has always been a lucrative market. Market growth in the region can be attributed to the high presence and penetration of major players. North America is a region with some of the biggest economies in the world, which are increasing demand like data processing and outsourcing, Internet service as well as infrastructure.
In addition, the integration of cloud-based services, automation solutions, and artificial intelligence with operational and supply chain processes is leading to the development of new intelligent IT services in the region. The need for end-user industries such as BFSI, retail, and others to reduce overall operating costs is a major factor driving the expansion of the North American market. Moreover, North American businesses are at the forefront of digital transformation, seeking to optimize operations, enhance customer experiences, and gain a competitive edge. IT professional service firm support these initiatives by providing digital strategy development, technology implementation, agile methodologies, and innovation-driven solutions.
In the market, organizations prioritize customer demand and operational efficiency to meet evolving business strategies and ensure effective expense management. With the rise of remote working, firms in this sector emphasize project management and business analytics to enhance business operations. Amid technological developments, the sector focuses on talent recruiting and leveraging tools to deliver high-quality ITO services. This dynamic landscape of the professional services sector demands agile business plans and a strong focus on organization to meet diverse client demands.
The growing digital transformation is driving growth in the market. The process by which individual aspects of a company's business, commercial models, and customer experience are integrated with information technologies is also known as "digital transformation". It involves the adoption of new technologies, the restructuring of business processes, and the cultural shifts necessary to embrace digitalization fully. The market is becoming a critical factor in the digitization process. One of the key drivers behind digital transformation is the need for organizations to stay competitive in today's rapidly evolving business landscape. With advancements in technology, customer expectations have changed, and organizations must adapt to meet these demands.
Furthermore, with the vast amount of data generated by business organizations, the ability to extract valuable insights has become crucial for decision-making. IT professional service providers play a significant role in helping organizations harness the power of data through services such as data integration, data governance, and advanced analytics. Organizations will be able to optimize their operation, customize customer experiences and find new business opportunities by using data-driven insights. Thus, growing digital transformation is one of the major drivers which is expected to drive the growth of the market in focus during the forecast period.
The growing adoption of hybrid and multi-cloud environments is a primary trend in the market. In view of the need to be flexible, scalable, and optimized resource allocation, there has been an overall trend in the market toward greater adoption of Hybrid and Multicloud Environments. One of the key advantages of hybrid and multi-cloud environments is their ability to offer organizations flexibility in choosing the most suitable cloud solutions for their specific needs. Organizations will be able to choose the best solution for any workload or application when they adopt a hybrid or multi-cloud approach.
Further, the adoption of hybrid and multi-cloud environments is driven by a number of key considerations, including risk mitigation and business continuity. Organizations can mitigate the risks of data loss or service disruption when the workload is distributed on a number of cloud platforms. If one cloud provider experiences an outage or performance issues, the workload can be seamlessly shifted to another platform. Professional service providers for information technology are working with organizations on the design of resistant architectures, implementing failover mechanisms, and establishing disaster recovery strategies to ensure uninterrupted service availability. Such factors are expected to drive the growth of the market focus during the forecast period.
The shortage of skilled workforce is a major challenge in the market. In the market, which is dominated by organizations from different sectors, an acute shortage of skilled workers represents a major challenge. As new technologies emerge and existing ones evolve, the demand for professionals with the latest skills and knowledge increases. With regard to the most recent trends in this sector, education institutions are frequently faced with difficulty updating their curricula. This leads to a gap between the skills graduates possess and those required by employers. The dynamic nature of the IT industry requires continuous learning and upskilling to stay relevant, which puts pressure on professionals to constantly update their skills.
Moreover, the shortage of skilled IT professionals is particularly acute in areas such as cybersecurity, data analytics, artificial intelligence, cloud computing, and software development. Experience and expertise, which is difficult to find on the labor market, are required in these specialized areas. Lack of industry-specific experience is another factor that contributes to the skill gap. Many organizations require IT professionals who not only possess technical skills but also understand the unique challenges and requirements of their specific industry. A shortage of skilled workforce can become a major challenge for the growth of the market in focus during the forecast period.
The market industry report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the market forecasting report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Market Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
The research report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The market report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
The market is witnessing significant growth driven by the increasing demand for automated billing, consultation, audit and accounting, and implementation support. With the rise in financial risk protection needs, companies are turning to providers offering analytic capabilities and advanced tools for accurate insights. Ecommerce businesses are seeking assistance in talent acquisition and protection against cyber breaches through cloud-based services with robust data security measures like the NIST Cybersecurity Framework. The emergence of edge cloud platforms and project-oriented services is reshaping collaboration among business strategists and IT specialists to navigate economic expansion securely. Technologies such as Blockchain, AI, IoT, 5G, and AR are driving innovation in networks and cloud services, emphasizing scalability, security, and real-time capabilities.
Further, the market is evolving to meet diverse needs, including resource sharing and support for ecommerce businesses leveraging cloud-based services and edge cloud platforms. Collaboration is enhanced through project-oriented services and Business Intelligence (BI) solutions, aiming to minimize resource wastage and optimize operations across various verticals. The integration of LTE technology facilitates autonomy and management of complex systems in real-time IT locations, with automatic updates ensuring system integrity. However, challenges persist, including security breaches and cyberattacks, highlighting the importance of addressing data security concerns and promoting feasibility in system integration. The market also emphasizes training and education in telecommunication, healthcare, and the adoption of SaaS and PaaS models for efficient deployment and managed services.
Market Scope |
|
Report Coverage |
Details |
Page number |
171 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 9.09% |
Market growth 2023-2027 |
USS 461.56 billion |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
8.67 |
Regional analysis |
North America, Europe, APAC, Middle East and Africa, and South America |
Performing market contribution |
North America at 37% |
Key countries |
US, Canada, China, UK, and Germany |
Competitive landscape |
Leading companies, Market Positioning of companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Accenture Plc, Amazon.com Inc., Atos SE, Capgemini Service SAS, CGI Inc., Cisco Systems Inc., Cognizant Technology Solutions Corp., Dell Technologies Inc., Deloitte Touche Tohmatsu Ltd., Fujitsu Ltd., HCL Technologies Ltd., Infosys Ltd., International Business Machines Corp., Mahindra and Mahindra Ltd., Microsoft Corp., Oracle Corp., Salesforce Inc., SAP SE, Tata Consultancy Services Ltd., and Wipro Ltd. |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and Market condition analysis for the forecast period. |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this market research report to meet your requirements.
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Type
7 Market Segmentation by End-user
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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