IT Professional Services Market Size, Share & Trends Analysis Report By Type (Project-oriented Services, ITO Services, IT Support & Training Services), By Deployment, By Enterprise Size, By End-use, By Region, And Segment Forecasts, 2023 - 2030

Report Overview

The global IT professional services market size was valued at USD 821.58 billion in 2022 and is expected to expand at a compound annual growth rate (CAGR) of 9.1% from 2023 to 2030. The rise of automation to eliminate mundane tasks and radical shift in customer demand such as customized pricing and enhanced customer experience are pushing enterprises to implement IT services across the globe and the increasing need for operational efficiency in the professional service firm. Additionally, the COVID-19 pandemic tested the professional services industry by forcing them to implement remote working at a large scale and adjust their business strategies to rapidly changing market conditions. COVID-19 accelerated several technological changes across industries, firms countered the pandemic with the help of technology by focusing on resource management and talent acquisition.

Professional services software’s fundamental functions are invoice & expense management, resource allocation, project management, and automated billing. The software also plays a dynamic role in instituting robust communication between internal stakeholders of the business, automating several time-consuming tasks, profit margin expansion, and supporting the market growth. For instance, in April 2022, Amazon Web Services, Inc., a cloud computing & storage service provider, launched Amazon Aurora Serverless v2, which can scale thousands of transactions in a fraction of a second. The Amazon Aurora Serverless v2 consistently governs & adjusts the database & its capacity to provide a sufficient amount of data to applications on demand.

Professional service firms can provide a variety of services, including consultation, audit and accounting, implementation support, and financial risk protection. They provide analytic capabilities as well as a foundation for managing business information. It is difficult to compete in today's market with data silos and legacy tools, so organizations rely on IT professional services to use advanced tools. These tools facilitate resource sharing, automate delivery processes, and provide accurate insights, all of which will propel the market forward.

Most governments focus on digitalizing their economic operations, which is anticipated to create robust market opportunities for professional services automation software. Various governments, such as Canada, India, Germany, and Saudi Arabia, are supporting regional market players to accelerate economic growth. For instance, in March 2022, the Government of Canada established Canada digital adoption program (CDAP) with an investment of USD 4 billion to assist small and medium-sized enterprises (SMEs) in adopting digital technologies. Under this program, the SMEs will receive USD 2,400 microgrant to cover the costs related to their e-commerce business such as social media advertising, website development, and other automated web actions.

The increased competition and digitalization are pushing enterprises to engage with professional service providers. IT professional service providers provide a streamlined and standardized approach to the administrative processes of the organization, assisting in the digital transformation of the organization's operations. For instance, in February 2022, Amazon Web Services, Inc. announced AWS local zones and infrastructure deployment global expansion in 16 U.S. cities with around 30 new local zones. These infrastructure deployments will assist AWS to expand its database, computing, storage, and other services to a large population from multiple industries. These developments would further drive the industry’s growth.

Type Insights

The project-oriented services segment accounted for the largest revenue share of 37.1% in 2022. Project-oriented services include timely maintenance, modernization, project installation, and decommissioning. These services are frequently tailored to meet the specific needs of the client, assisting them to maximize operational efficiency and deliver projects on time and within budget. Organizations can benefit from project-oriented services in a variety of ways, such as scope management, revenue management, preparing improved quotations, resource management, and effective project delivery. These are the primary factors driving segment demand.

The information technology outsourcing (ITO) service segment is anticipated to witness a significant CAGR of 9.9% during the forecast period owing to its ability to help organizations across various industries to respond to changing business needs, allowing organizations to focus on innovation instead of IT infrastructure. Organizations utilize ITO services to gain access to deep technical expertise, deliver automation, and bring down costs by choosing an appropriate delivery model. Additionally, ITO services offer a deep pool of resources to create effective return on investment (ROI), and it bridges the gap between legacy IT systems and innovation. These benefits provided by ITO services are expected to boost the growth of the segment.

Deployment Insights

The cloud segment dominated the market in 2022 and accounted for a revenue share of 68.9%. Cloud computing is gaining popularity owing to various benefits it offers such as a reduction in technology infrastructure costs, increased accessibility, and reduced overall implementation costs. The improving internet infrastructure is driving the adoption of cloud-based solutions. Increasing competition across various sectors is propelling companies to cut down on expenditure, thereby creating a need for low-cost solutions. These features and capabilities would further supplement the segment’s growth.

The on-premise segment is expected to witness considerable growth of a CAGR of 7.7% over the forecast period. On-premise solutions offer robust data security & privacy and are less vulnerable to digital threats, driving the segment growth. Moreover, these solutions can perform their work and provide safe access to the data even if the internet connection is interrupted due to its local data storage system. For instance, in January 2022, Syntax expanded its partnership with Oracle Corporation for oracle cloud infrastructure (OCI) and will help Oracle transform Oracle E-Business Suite into cloud platforms. Both companies will enable Oracle E-Business Suite customers to extend or migrate their solutions on-premise with low costs and enhanced salability.

Enterprise Size Insights

The large enterprises segment accounted for the largest revenue share of 63.3% in 2022. Due to their low operating costs, improved customer experience, improved team collaboration, and lower workforce costs, these businesses are major users of IT professional services solutions. These enterprises sign long-term agreements with professional services automation software providers to reduce software costs and enable their employees to become familiar with IT professional services solutions quickly. For instance, in March 2022, Nividous Software Solutions collaborated with Damco Solutions to streamline core and non-core business processes of various industries using intelligent automation processes.

The small & medium enterprises (SMEs) segment is expected to witness a significant CAGR of 11.2% over the forecast period. The SMEs sector is an untapped market and has become an area of focus for industry players. According to the World Bank, the SMB sector accounts for 95% of the existing business. The availability of cloud-based IT professional services tools at affordable prices is anticipated to drive their demand in the SMEs sector. On average, a small enterprise spends over 6% of its revenue on IT, whereas a mid-sized firm spends over 4% and a large enterprise spends around 3%. As the number of SMEs is increasing, competition is also increasing, which has resulted in a price drop of the solution and profit erosion.

End-use Insights

The technology companies segment held the largest revenue share of 43.3% in 2022. Technology companies rely on the intelligent use of data analytics that can be attained with the help of IT professional services. Moreover, technology continues to evolve thus; several technology companies, particularly those focusing on the development of technology as a service (TaaS), opt for IT professional services as part of their efforts to support their business operations. Additionally, the COVID-19 pandemic also triggered the need for digital transformation, with many technological shifts in work culture, such as working remotely, and maintaining the organization’s IT infrastructure; all of these factors are contributing to the growth of this segment.

The marketing and communication companies segment is anticipated to grow at a CAGR of 10.4% over the forecast period. These companies depend on extensive market research, website analysis, budget allocation, and reputation management which can be executed with the help of IT professional services. Additionally, the rise of digital media and enhanced customer experience will push the segment to grow further. For instance, in April 2019, Upland Software introduced the Upland Professional Services Automation solution equipped with Upland WorkCenter to provide key performance indicators (KPIs) information in one unified dashboard. These developments and benefits would further drive the growth of the segment during the forecast period.

Regional Insights

North America accounted for the largest revenue share of 37.6% in 2022, owing to the high adoption of enterprise resource planning (ERP) and cloud services for data management. Furthermore, the integration of advanced technologies such as artificial intelligence (AI) & machine learning (ML) and new solution introduction by market players are creating positive traction for IT professional services solutions in the region. Moreover, the majority of foreign-owned U.S. affiliate firms in the U.S. are investing heavily in IT professional services research and development, which will support the growth of IT professional services in this region during the forecast period.

The Asia Pacific is anticipated to witness a significant CAGR of 11.0% over the forecast period. The demand for knowledge-based services is expected to rise exponentially in the legal & advisory, and accounting service industries of this region which will boost the growth over the forecast period. Besides, growing economies such as China and India are focusing on IT development which will unfold numerous opportunities for IT professional services in the region. Additionally, the Asia Pacific region comprises numerous SMEs that largely rely on professional services for the smooth execution of daily operations.

Key Companies & Market Share Insights

The key industry participants include Accenture; Datto, Inc.; Capgemini; International Business Machines Corporation; DXC Technology Company, and FUJITSU. Market players are observed to invest resources in research & development activities to support growth and enhance their internal business operations. Companies can be seen engaging in mergers & acquisitions and partnerships to further upgrade their products and gain a competitive advantage in the market. They are effectively working on new product development, and enhancement of existing products to acquire new customers and capture more market shares.

For instance, In June 2022, Hewlett Packard Enterprise launched innovations for the HPE GreenLake edge cloud platform to provide robust cloud services to the data center at nominal costs. With these innovations, HPE GreenLake cloud will support various critical applications such as high-performance computing (HPC), AI, financial services, and risk & data analytics in telecom infrastructure. With HPE, the company will be able to attract potential business clients. Some prominent players in the global IT professional services market include:

• Accenture

• Datto, Inc.

• Capgemini

• International Business Machines Corporation

• DXC Technology Company

• FUJITSU

• Hewlett Packard Enterprise Development LP

• Microsoft Corporation

• Oracle Corporation

• VMware, Inc.

IT Professional Services Market Report Scope

Global IT Professional Services Market Segmenation

This report forecasts revenue growth at the global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2018 to 2030. For this study, Grand View Research has segmented the global IT professional services market report based on type, deployment, enterprise size, end-use, and region:

• Type Outlook (Revenue, USD Billion, 2018 - 2030)

  • Project-oriented Services

  • ITO Services

  • IT Support & Training Services

  • Enterprise Cloud Computing Services

• Deployment Outlook (Revenue, USD Billion, 2018 - 2030)

  • On-premise

  • Cloud

• Enterprise Size Outlook (Revenue, USD Billion, 2018 - 2030)

  • Small & Medium Enterprises (SMEs)

  • Large Enterprises

• End-use Outlook (Revenue, USD Billion, 2018 - 2030)

  • Technology Companies

  • Consulting Companies

  • Marketing & Communication Companies

  • Others (Architectural & Engineering Companies, Scientific Research Organizations, Educational Institutions, and Hospitality Industry)

• Regional Outlook (Revenue, USD Billion, 2018 - 2030)

  • North America

    • U.S.

    • Canada

  • Europe

    • U.K.

    • Germany

    • France

    • Italy

    • Spain

  • Asia Pacific

    • China

    • Japan

    • India

    • Australia

    • Thailand

    • South Korea

  • Latin America

    • Brazil

    • Mexico

  • MEA

    • UAE

    • Saudi Arabia