GVR Report cover IT Professional Services Market Size, Share & Trends Report

IT Professional Services Market Size, Share & Trends Analysis Report By Type (Project-oriented Services, ITO Services, IT Support & Training Services), By Deployment, By End Use, By Region, and Segment Forecasts, 2022 - 2030

  • Report ID: GVR-2-68038-762-9
  • Number of Pages: 150
  • Format: Electronic (PDF)
  • Historical Range: 2017 - 2020
  • Industry: Technology

Report Overview

The global IT professional services market size was valued at USD 777.28 billion in 2021 and is expected to register a compound annual growth rate (CAGR) of 11.2% from 2022 to 2030. The rise of automation to eliminate mundane tasks and radical shifts in customer demand such as customized pricing and enhanced customer experience are pushing enterprises to implement IT services across the globe. 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 the rapidly changing market conditions. Additionally, the COVID-19 outbreak also accelerated several technological changes across industries, where firms survived the pandemic with the help of technology by focusing on resource management and talent acquisition.

U.S. IT professional services market size, by type, 2020 - 2030 (USD Billion)

In the current scenario, firms are preparing for possible challenges ahead, they are redesigning their business models to make sure they have the required skillsets, funds, and tools to gain an advantage in the long run. IT professional services help organizations in identifying the areas for cost-saving and offer multiple other benefits, such as Business Intelligence (BI), accurate forecasting, improved business operations, and reduced wastage of resources.  Several firms are expected to utilize IT professional services to streamline their business post-pandemic further boosting the business growth.         

Professional service firms can offer a combination of services such as consultation, audit & accounting, implementation support, and immunity from financial risk. They offer analytic capabilities and a basis for managing business information. In today’s competitive market it is hard to survive with silos of data & legacy tools, so organizations depend on IT professional services to use advanced tools. These tools facilitate sharing of resources, automate the delivery process and provide accurate insights, which will further drive the industry growth.

Implementation of IT professional services can be found in various private and public sectors; some businesses may use professional services as the primary line of business, whereas for some businesses, it works as a value driver to the core offering. As businesses grow, firms need more robust tools to work efficiently, in such cases it is extremely helpful to deploy professional services as it oversees projects, track time and bill, manage resources and automate mundane back-end tasks. IT professional services utilize several advanced technologies such as Robotic Process Automation (RPA), Artificial Intelligence (AI), Machine Learning (ML), Internet of Things (IoT), chatbots, blockchain, and big data analytics to create new business models and consequently map their business strategies to enhance their returns.

Increased competition and digitalization is pushing organizations to engage with professional service providers. These service providers primarily focus on helping organizations to improve their operational efficiency by addressing issues related to poor service infrastructure and improper staffing. The IT professional service providers offer a streamlined and standardized approach to the organization's administrative processes which help in the digital transformation of the organization’s operations. Based on the strategy, firms can categorize the usage of professional services into two sections. First, business-centric which offers value-driven revenue models, and second, employee-centric that can be utilized for the recruitment of hybrid talent and fill the skill gap.

Type Insights

The project-oriented services segment dominated the IT professional services market in 2021 and accounted for a revenue share of over 35%. These services are related to installation, modernization, timely maintenance, and decommissioning of a project. These services are often custom-built to meet the specific client needs, assisting them to optimize operational efficiency and deliver projects on time within the allocated budget. Organizations can be benefitted in multiple ways as project-oriented services help in resource management, scope management, revenue management, preparing improved quotations, and effective delivery of the project. These are the major factors fueling the demand for the segment.

Information Technology Outsourcing (ITO) service segment is expected to witness the fastest CAGR of 12.0% during the forecast period due 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 an effective Return on Investment (ROI), and it bridges the gap between legacy IT systems and innovation. High-performance computing, adherence to compliance, security, and scalability are a few advantages that are expected to boost the growth of this segment.

Deployment Insights

The cloud segment dominated the IT professional services market in 2021 and accounted for a revenue share of over 65%. Cloud deployment can add value to enterprises by offering operational agility, flexibility, and adequate storage management. The ease of deployment and reduced cost of installation are encouraging organizations to move their businesses to cloud-based platforms. Additionally, it helps organizations improve efficiency, immediacy, accessibility, and scalability, which is propelling the demand for cloud deployment. Several enterprises are opting for cloud computing to adopt the Bring Your Own Device (BYOD) policy and ensure a flexible working environment.

The on-premise segment is expected to witness considerable growth of a CAGR of 9.8% over the forecast period. Organizations choose on-premise deployment to have a better command of the IT infrastructure along with the ability to customize infrastructure whenever required. The major reason for firms to adopt on-premise deployment is data protection, which means sensitive data will not leave the company premises, and it will be protected from potential fraud and data loss. Another factor that encourages firms for on-premise deployment is less dependency on the internet which means in case of a network problem employees will still be able to access data. Such benefits are expected to push the demand for on-premise deployment.

End-Use Insights

The technology companies segment dominated the market with the largest market share of over 40%. Technology companies rely on the intelligent use of data analytics that can be attained with the help of IT professional services. Moreover, technology is constantly evolving 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. 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 IT professional services market growth.

Global IT professional services market revenue share, by end use, 2021 (%)

The marketing and communication companies’ segment is anticipated to grow with the fastest CAGR of 12.6% 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 continue to push the segment growth further.  At present, it is essential for marketing and communication companies to actively engage with customers and monitor their activities for further evaluation. In this way, marketing and communication companies save a lot of money by proactively sharing information and sending targeted advertisements.

Regional Insights

North America dominated the market in 2021 and accounted for a market share of over 35% owing to the high adoption of Enterprise Resource Planning (ERP) and cloud services for data management. Moreover, the growth of the retail sector in the region requires vendors to use features such as inventory management, data analytics, and reporting, and loyalty management further fueling the region’s growth. Also, the majority of foreign-owned U.S. affiliates firms in the U.S. are investing heavily in the research and development of IT professional services, which will further support the growth of IT professional services across the region.

In addition to above, Asia Pacific is also expected to emerge as one of the fastest-developing regional market with a CAGR of 12.6% 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 forecasted period. Besides, growing economies such as China and India are focusing on IT development which will unfold numerous opportunities for IT professional services across APAC. Additionally, the Asia Pacific region comprises numerous SMEs who largely rely on professional services for smooth execution of daily operations.

Key Companies & Market Share Insights

Eminent market players are aggressively investing in research & development activities, improving their internal processes, improving their existing products, and actively engaging in new product development as a part of their efforts to acquire new customers and increase their respective market shares. They are also focusing on mergers & acquisitions and strategic collaborations to develop technologically advanced services and gain a competitive edge in the market. For instance, in June 2020 Netmagic, an NTT company collaborated with VMware to launch cloud health services in India. The collaboration helped Netmagic in cost optimization, resource management, and data security. Some of the prominent players operating 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

Report Attribute

Details

Market size value in 2022

USD 821.58 billion

Revenue forecast in 2030

USD 1,921.33 billion

Growth Rate

CAGR of 11.2% from 2022 to 2030

Base year for estimation

2021

Historical data

2017 - 2020

Forecast period

2022 - 2030

Quantitative units

Revenue in USD billion and CAGR from 2022 to 2030

Report coverage

Revenue forecast, company market share, competitive landscape, growth factors, and trends

Segments covered

Type, deployment, end use,  region

Regional scope

North America, Europe, Asia Pacific, Latin America, MEA

Country scope

U.S.; Canada; Germany; U.K.; China; India; Japan; Brazil

Key companies profiled

Accenture; Datto, Inc.; Capgemini; International Business Machines Corporation; DXC Technology Company; FUJITSU; Hewlett Packard Enterprise Development LP; Microsoft Corporation; OracleCorporation; VMware, Inc.

Customization scope

Free report customization (equivalent up to 8 analyst working days) with purchase. Addition or alteration to country, regional, and segment scope.

Pricing and purchase options

Avail customized purchase options to meet your exact research needs. Explore purchase options

 

Segments Covered in the Report

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 2017 to 2030. For this study, Grand View Research has segmented the global IT professional services market based on type, deployment, end use, and region:

  • Type Outlook (Revenue, USD Billion, 2017 - 2030)

    • Project-oriented Services

    • ITO Services

    • IT Support & Training Services

    • Enterprise Cloud Computing Services

  • Deployment Outlook (Revenue, USD Billion, 2017 - 2030)

    • On-premise

    • Cloud

  • End-Use Outlook (Revenue, USD Billion, 2017 - 2030)

    • Technology Companies

    • Consulting Companies

    • Marketing & Communication Companies

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

  • Regional Outlook (Revenue, USD Billion, 2017 - 2030)

    • North America

      • U.S.

      • Canada

    • Europe

      • U.K.

      • Germany

    • Asia Pacific

      • China

      • Japan

      • India

    • Latin America

      • Brazil

    • MEA

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