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IT Services Market by Service and Geography - Forecast and Analysis 2021-2025

  • Published: Sep 2021
  • Pages: 120
  • SKU: IRTNTR70956
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The market share is expected to increase by USD 478.39 billion from 2020 to 2025, and the market's growth momentum will accelerate at a CAGR of 8.27%.

This market research report provides valuable insights on the post COVID-19 impact on the market, which will help companies evaluate their business approaches. Furthermore, this report extensively covers market segmentations by service (IT consulting and other services, internet services, and infrastructure, and data processing and outsources services) and geography (APAC, North America, Europe, South America, and MEA). The market report also offers information on several market vendors, including Accenture Plc, Cognizant Technology Solutions Corp., DXC Technology Co., Fujitsu Ltd., Hewlett Packard Enterprise Co., International Business Machines Corp., Microsoft Corp., Oracle Corp., Telefonaktiebolaget LM Ericsson, and Toshiba Corp. among others.

What will the Market Size be During the Forecast Period?

IT Services Market Size

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Market: Key Drivers, Trends, and Challenges

Based on our research output, there has been a  impact on the market growth during and post COVID-19 era. The growing adoption of edge data centers is notably driving the market growth, although factors such as risks involved in outsourcing may impede market growth. Our research analysts have studied the historical data and deduced the key market drivers and the COVID-19 pandemic impact on the industry. The holistic analysis of the drivers will help in deducing end goals and refining marketing strategies to gain a competitive edge.

Key IT Services Market Driver

The growing adoption of edge data centers is a key driving factor impacting the global IT services market growth. The demand for edge data centers is growing owing to an increase in the adoption of cloud services and the generation of a considerable volume, veracity, variety, and velocity of data across enterprises. Google LLC (Google), Amazon.com Inc. (Amazon.com), Apple Inc. (Apple), and Facebook Inc. (Facebook) are some of the companies that are investing significantly in building their own data centers. These companies are the clients of edge data center solution providers. As these companies must build their own data centers, they approach edge data center solution providers for power solutions, DCIM solutions, cooling systems, and security solutions, among others. Moreover, the growing adoption of edge data centers is significantly rising, and several startups are in the process of providing colocation services for the expansion of these centers. Moreover, a rise in investments in the construction of data center facilities by enterprises will increase the demand for colocation and infrastructure services, which, in turn, will drive the growth of the global IT services market during the forecast period.

Key IT Services Market Trend

The emergence of AI in information management is a key trend impacting the global IT services market growth. Several enterprises across the world are integrating AI to develop and exploit data from IT services. Integrating AI in information services helps automate several processes and enhances process efficiency. Besides, in enterprises, half of the employees spend time doing paperwork. This reduces the overall Return on investment (ROI) of enterprises and increases their costs. Thus, enterprises are opting for IT services integrated with advanced technologies such as AI. Integrating AI in IT services enhances the efficiency and process integrity of information services. Besides, AI is used to categorize and tag the information which makes it easy to find the information or data in the future. There are several other advantages of AI in information services, such as applying structure to unstructured data, streamlining information, enhancing information security, and improving data quality. Such advantages of AI in information services are anticipated to increase the efficiency of vendors operating in the global IT services market in the future. 

Key IT Services Market Challenge

Risks involved in outsourcing will be a major challenging factor that will impact negatively the global IT services market growth. Outsourcing could result in a loss of control as the outsourced agency may make excessive demands and change business rules. Such actions are likely to lead to high levels of dissatisfaction among organizations. A few organizations may lose control over their financial and supply chain functions after outsourcing, as they may run the risk of not being able to operate independently and successfully. Outsourcing service providers need to communicate effectively with their clients to deliver the service required in a timely manner. Communication during the procurement contract tenure is required between clients and vendors to reduce outsourcing risks and build trust. Communication is also required at various stages of the IT service delivery system to avoid system failures and provide a backup and recovery facility. The above factors will hinder the market growth during the forecast period.

This market analysis report also provides detailed information on other upcoming trends and challenges that will have a far-reaching effect on the market growth. The actionable insights on the trends and challenges will help companies evaluate and develop growth strategies for 2021-2025.

Parent Market Analysis

Technavio categorizes the global IT services market is a part of the global information technology (IT) spending market. Our research report has extensively covered external factors influencing the parent market growth potential in the coming years, which will determine the levels of growth of the market during the forecast period.

Who are the Major Market Vendors?

The report analyzes the global information technology (IT) spending market's competitive landscape and offers information on several market vendors, including:

 

  • Accenture Plc
  • Cognizant Technology Solutions Corp.
  • DXC Technology Co.
  • Fujitsu Ltd.
  • Hewlett Packard Enterprise Co.
  • International Business Machines Corp.
  • Microsoft Corp.
  • Oracle Corp.
  • Telefonaktiebolaget LM Ericsson
  • Toshiba Corp.

 

This statistical study of the market encompasses successful business strategies deployed by the key vendors. The market is fragmented and the vendors are deploying growth strategies such as investing in R&D to advance their offerings and increase their consumer base to compete in the market.

Product Insights and News

  • Fujitsu Ltd. - The company offers IT infrastructure service which follows lean principals, green environmental best practices and industrialized approach to technical design.

To make the most of the opportunities and recover from post COVID-19 impact, market vendors should focus more on the growth prospects in the fast-growing segments, while maintaining their positions in the slow-growing segments.

The market forecast report offers in-depth insights into key vendor profiles. The profiles include information on the production, sustainability, and prospects of the leading companies.

Market Value Chain Analysis

Our report provides extensive information on the value chain analysis for the market, which vendors can leverage to gain a competitive advantage during the forecast period. The end-to-end understanding of the value chain is essential in profit margin optimization and evaluation of business strategies. The data available in our value chain analysis segment can help vendors drive costs and enhance customer services during the forecast period.

The value chain of the global information technology (IT) spending market includes the following core components:

  • Inputs
  • Inbound logistics
  • Operations
  • Outbound logistics
  • Marketing and sales
  • Service
  • Support activities
  • Innovation

The report has further elucidated other innovative approaches being followed by service providers to ensure a sustainable market presence.

Which are the Key Regions for the Market?

IT Services Market Market segmentation by region

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40% of the market's growth will originate from APAC during the forecast period.China is the key markets for the market in APAC. Market growth in this region will be faster than the growth of the market in regions.

The growth of the IT services market in APAC is also driven by the increasing demand for advanced information and communications technology infrastructure, stabilizing economic conditions, and increasing public sector investments in IT which will facilitate the market growth in APAC over the forecast period. This market research report entails detailed information on the competitive intelligence, marketing gaps, and regional opportunities in store for vendors, which will assist in creating efficient business plans.

COVID Impact and Recovery Analysis

The outbreak of COVID-19 severely affected major countries in APAC, including China, India, South Korea, and Japan. The pandemic led to significant disruptions in supply chains and impacted the growth of small and medium enterprises (SMEs). However, the pandemic also led to the increasing adoption of advanced technologies such as AI, cloud-based services, and others, which became part of the trade lifecycle, including collateral management, clearing and settlement, payments, and reconciliation in the region. Many manufacturing companies and retail companies are entering the Asian market, especially in India, Vietnam, and China. This shift would require a large number of IT services, which will further drive the growth of the IT services market in APAC during the forecast period.

What are the Revenue-generating Service Segments in the Market?

IT Services Market Segmentation

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The market share growth by the IT consulting and other services segment will be significant during the forecast period. The new consulting services organization launched by Microsoft will introduce a new consulting model that will enhance customer engagement and increase the adoption of Microsoft cloud-based services. Such developments will accelerate the demand for IT consulting services, which will drive the growth of the market during the forecast period.

This report provides an accurate prediction of the contribution of all the segments to the growth of the market size and actionable market insights on post COVID-19 impact on each segment.

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Market Scope

Report Coverage

Details

Page number

120

Base year

2020

Forecast period

2021-2025

Growth momentum & CAGR

Accelerate at a CAGR of 8.27%

Market growth 2021-2025

$ 478.39 billion

Market structure

Fragmented

YoY growth (%)

6.35

Regional analysis

APAC, North America, Europe, South America, and MEA

Performing market contribution

APAC at 40%

Key consumer countries

US, China, India, UK, and Germany

Competitive landscape

Leading companies, Competitive strategies, Consumer engagement scope

Key companies profiled

Accenture Plc, Cognizant Technology Solutions Corp., DXC Technology Co., Fujitsu Ltd., Hewlett Packard Enterprise Co., International Business Machines Corp., Microsoft Corp., Oracle Corp., Telefonaktiebolaget LM Ericsson, and Toshiba Corp.

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, Market condition analysis for forecast period

Customization purview

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What are the Key Data Covered in this Market Report?

  • CAGR of the market during the forecast period 2021-2025
  • Detailed information on factors that will drive market growth during the next five years
  • Precise estimation of the market size and its contribution to the parent market
  • Accurate predictions on upcoming trends and changes in consumer behavior
  • The growth of the industry across APAC, North America, Europe, South America, and MEA
  • A thorough analysis of the market's competitive landscape and detailed information on vendors
  • Comprehensive details of factors that will challenge the growth of market vendors

We can help! Our analysts can customize this report to meet your requirements. Get in touch

1 Executive Summary

2 Market Landscape

  • 2.1 Market ecosystem
    • Exhibit 01: Parent market
    • Exhibit 02: Market characteristics
  • 2.2 Value chain analysis

    3 Market Sizing

    • 3.1 Market definition
      • Exhibit 03: Offerings of vendors included in the market definition
    • 3.2 Market segment analysis
      • Exhibit 04: Market segments
    • 3.3 Market size 2020
      • 3.4 Market outlook: Forecast for 2020 - 2025
        • Exhibit 05: Global - Market size and forecast 2020 - 2025 ($ billion)
        • Exhibit 06: Global market: Year-over-year growth 2020 - 2025 (%)

      4 Five Forces Analysis

      • 4.1 Five forces summary
        • Exhibit 07: Five forces analysis 2020 & 2025
      • 4.2 Bargaining power of buyers
        • Exhibit 08: Bargaining power of buyers
      • 4.3 Bargaining power of suppliers
        • Exhibit 09: Bargaining power of suppliers
      • 4.4 Threat of new entrants
        • Exhibit 10: Threat of new entrants
      • 4.5 Threat of substitutes
        • Exhibit 11: Threat of substitutes
      • 4.6 Threat of rivalry
        • Exhibit 12: Threat of rivalry
      • 4.7 Market condition
        • Exhibit 13: Market condition - Five forces 2020

      5 Market Segmentation by Service

      • 5.1 Market segments
        • 5.2 Comparison by Service
          • 5.3 IT consulting and other services - Market size and forecast 2020-2025
            • Exhibit 16: IT consulting and other services - Market size and forecast 2020-2025 ($ billion)
            • Exhibit 17: IT consulting and other services - Year-over-year growth 2020-2025 (%)
          • 5.4 Internet services and infrastructure - Market size and forecast 2020-2025
            • Exhibit 18: Internet services and infrastructure - Market size and forecast 2020-2025 ($ billion)
            • Exhibit 19: Internet services and infrastructure - Year-over-year growth 2020-2025 (%)
          • 5.5 Data processing and outsources services - Market size and forecast 2020-2025
            • Exhibit 20: Data processing and outsources services - Market size and forecast 2020-2025 ($ billion)
            • Exhibit 21: Data processing and outsources services - Year-over-year growth 2020-2025 (%)
          • 5.6 Market opportunity by Service
            • Exhibit 22: Market opportunity by Service

          6 Customer Landscape

          7 Geographic Landscape

          • 7.1 Geographic segmentation
            • 7.2 Geographic comparison
              • 7.3 APAC - Market size and forecast 2020-2025
                • 7.4 North America - Market size and forecast 2020-2025
                  • 7.5 Europe - Market size and forecast 2020-2025
                    • 7.6 South America - Market size and forecast 2020-2025
                      • 7.7 MEA - Market size and forecast 2020-2025
                        • 7.8 Key leading countries
                          • 7.9 Market opportunity by geography

                            8 Drivers, Challenges, and Trends

                            • 8.1 Market drivers
                              • 8.2 Market challenges
                                • 8.3 Market trends

                                  9 Vendor Landscape

                                  • 9.1 Overview
                                    • 9.2 Vendor landscape
                                      • 9.3 Landscape disruption

                                        10 Vendor Analysis

                                        • 10.1 Vendors covered
                                          • 10.2 Market positioning of vendors
                                            • 10.3 Accenture Plc
                                              • 10.4 Cognizant Technology Solutions Corp.
                                                • 10.5 DXC Technology Co.
                                                  • 10.6 Fujitsu Ltd.
                                                    • 10.7 Hewlett Packard Enterprise Co.
                                                      • 10.8 International Business Machines Corp.
                                                        • 10.9 Microsoft Corp.
                                                          • 10.10 Oracle Corp.
                                                            • 10.11 Telefonaktiebolaget LM Ericsson
                                                              • 10.12 Toshiba Corp.

                                                                11 Appendix

                                                                • 11.1 Scope of the report
                                                                  • 11.2 Currency conversion rates for US$
                                                                    • 11.3 Research methodology
                                                                      • 11.4 List of abbreviations

                                                                        Research Framework

                                                                        Technavio presents a detailed picture of the market by way of study, synthesis, and summation of data from multiple sources. The analysts have presented the various facets of the market with a particular focus on identifying the key industry influencers. The data thus presented is comprehensive, reliable, and the result of extensive research, both primary and secondary.

                                                                        TechnavioINFORMATION SOURCES

                                                                        Primary sources

                                                                        • Manufacturers and suppliers
                                                                        • Channel partners
                                                                        • Industry experts
                                                                        • Strategic decision makers

                                                                        Secondary sources

                                                                        • Industry journals and periodicals
                                                                        • Government data
                                                                        • Financial reports of key industry players
                                                                        • Historical data
                                                                        • Press releases
                                                                        Technavio

                                                                        TechnavioDATA ANALYSIS

                                                                        Data Synthesis

                                                                        • Collation of data
                                                                        • Estimation of key figures
                                                                        • Analysis of derived insights

                                                                        Data Validation

                                                                        • Triangulation with data models
                                                                        • Reference against proprietary databases
                                                                        • Corroboration with industry experts
                                                                        Technavio

                                                                        TechnavioREPORT WRITING

                                                                        Qualitative

                                                                        • Market drivers
                                                                        • Market challenges
                                                                        • Market trends
                                                                        • Five forces analysis

                                                                        Quantitative

                                                                        • Market size and forecast
                                                                        • Market segmentation
                                                                        • Geographical insights
                                                                        • Competitive landscape
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                                                                        IT Services Market market growth will increase by $478.39 bn during 2021-2025.
                                                                        The it services market market is expected to grow at a CAGR of 8.27% during 2021-2025.
                                                                        Technavio has segmented the it services market market by service (IT consulting and other services, Internet services and infrastructure, and Data processing and outsources services) ,geography (APAC, North America, Europe, South America, and MEA) , and geographic (APAC, North America, Europe, South America, and MEA).
                                                                        Accenture Plc, Cognizant Technology Solutions Corp., DXC Technology Co., Fujitsu Ltd., Hewlett Packard Enterprise Co., International Business Machines Corp., Microsoft Corp., Oracle Corp., Telefonaktiebolaget LM Ericsson, Toshiba Corp. are a few of the key vendors in the it services market market.
                                                                        APAC will register the highest growth rate of 40% among the other regions. Therefore, the it services market market in APAC is expected to garner significant business opportunities for the vendors during the forecast period.
                                                                        The key factors driving the it services market market growth are:
                                                                        • growing adoption of edge data centers
                                                                        • Emergence of AI in information management
                                                                        The it services market market vendors should focus on grabbing business opportunities from the it consulting and other services segment as it accounted for the largest market share in the base year.
                                                                        • What are the key global market and the regional market share?
                                                                        • What are the revenue-generating key market segments?
                                                                        • What are the key factors driving and challenging this market’s growth?
                                                                        • Who are the key market vendors and their growth strategies?
                                                                        • What are the latest trends influencing the growth of this market?
                                                                        • What are the variables influencing the market growth in the primary regions?
                                                                        • What are the factors influencing the growth of the parent market?
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                                                                        • Details on the market shares of various regions
                                                                        • Five-force market analysis

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