IT Services Market Size, Share & Trends Analysis Report By Type (Security Outsourcing, IT Support, Managed Security Services, Systems, Network Implementations), By Region, And Segment Forecasts, 2022 - 2028

Report Overview

The global IT services market size was valued at USD 98.5 billion in 2021 and is estimated to rise at a compound annual growth rate (CAGR) of 9.5% from 2022 to 2028. Increasing concerns regarding data security and privacy protection are driving the demand for IT services from companies working across various industry verticals. Moreover, rising complications in network infrastructure are acting as the main impedances to effective data security management; thus, driving the requirement for and implementation of IT services. The COVID-19 outbreak positively impacted the market. The FBI reported a 300% increase in reported cybercrimes in the first few months after the beginning of the COVID-19 pandemic. Therefore, the demand for IT services from enterprises increased to secure their business process and operations.

IT services are mainly provided by external partners and are utilized for individual safety measures or for implementing general security strategies. The market is increasing and developing, and several kinds of services, as well as models of IT services, are spreading with rising customer demand. In the context of global digitalization, the recognized trends open new opportunities for growth and sustainable development of enterprises, gaining popularity in the market. Moreover, the pace of IT services distribution is growing year after year with most nations becoming active players in the market.

 IT services are the application of business as well as technical expertise to allow companies in the creation, management, and optimization or admittance to information and business processes. In addition, several benefits of IT services include increased IT efficiency and productivity, better support for regulatory and compliance challenges, and increased control.

Furthermore, due to huge cloud deployments across end-user sectors, IT cloud services are growing. For example, the U.S. market is home to most of the world's largest cloud providers, and the country has a significant proportion of cloud storage. The volume of data produced in the country has become a major driver of cloud adoption. IT services are also gaining popularity inside the hybrid IT-managed environment, due to the rise of the Industrial Internet of Things (IIoT) throughout the Industry 4.0 platform. The use of Artificial Intelligence (AI) is expanding throughout the manufacturing and design sectors, boosting market demand for IT services during the projection period.

Organizations are increasingly turning to IT service providers because of increased competitiveness and digitization. These service providers generally assist businesses in improving their operational efficiency by resolving challenges such as inadequate service infrastructure, and networking issues. IT service providers give a simplified and standardized approach to an organization's administrative procedures, which aids in the digital transformation of operations. Furthermore, the vulnerability of supply chains has been highlighted because of the start of the COVID-19. During the spread of the COVID-19, companies and businesses turned to IT services to manage business operations and agility.  Work-from-home rules have also prompted service providers to guarantee that mission-critical enterprise customers have the tools and technology they need to improve the security, quality, speed, and overall efficacy of services.

The COVID-19 pandemic has positively affected the market. The pandemic has enforced companies to quickly digitalize their business models, form flexible and remote working surroundings, reach clients, and handle employees predominately over digital channels. This generates an opportunity for the IT services to be reactive to the escalating number of cybersecurity attacks as well as an increasing number of businesses necessitating cybersecurity services. 

Type Insights

The managed security services segment dominated the market and contributed a revenue share of around 45% in 2021 and is forecast to grow at a CAGR of 10.0% from 2022 to 2028. According to an NTT Ltd. commissioned report by IDG, nearly 55% of the businesses are looking for managed service providers to choose for their value-added services and decrease security risks, which have augmented multifold since the outbreak of the COVID-19 pandemic as personnel is working remotely, also business partners and clients are dependent completely on electronic communication. Thus, the demand for managed security services was high and contributed more to the market revenue.

The security outsourcing segment is expected to witness the 2^nd highest CAGR of 9.7% from 2022 to 2028. In the first half of 2019, data breaches exposed over 4.1 billion records. The constantly increasing number of cyberattacks is a key concern for business owners globally. Security outsourcing is more economical compared to in-house IT security. Due to this small and mid-sized businesses frequently opt to outsource their security services. Thus, the security outsourcing demand is increasing rapidly and is expected to grow at a considerable CAGR during the forecast period. 

Regional Insights

Asia Pacific is projected to register the highest CAGR of 10.0% from 2022 to 2028. According to ISG, the rise in IT service spending from enterprises in the Asia Pacific comes as COVID-19 speeds up digital transformation and the move to the cloud, with global demand for IT services reaching a new record. Most of the companies across the Asia Pacific have increased their investment in new technologies to quickly implement and react to business disruptions. Thus, the region is expected to grow at the fastest CAGR during the forecast period. 

North America accounted for a significant market revenue share of around 40% in 2021. The growing implementation of smart technologies and swelling security investment are some of the major factors driving the demand for IT services in North America. According to the CompTIA’s Cyberstates, the economic impact of the U.S. technology sector exceeded other industries, such as retail, construction, and transportation. Thus, the demand for IT services is high and it contributes to more revenue generation in North America. 

Europe is expected to showcase strong growth in the adoption of IT services during the forecast period backed by high adoption of professional and managed services, increasing security investment, and rising adoption of smart technologies. IT services have become more data-driven and real-time due to developments of the cloud-based platform, producing higher value for the company, particularly in the areas of operational efficiency, business opportunity identification, and remote access optimization. This is further expected to contribute to the growth of the regional market. 

Key Companies & Market Share Insights

The market is characterized by the existence of established as well as new companies. Most of the companies operating in the market have adopted different strategies such as collaborations, partnerships, mergers & acquisitions, and joint ventures to reinforce their position in the global market and to gain maximum market share. Some of the prominent players in the global IT services market include:

• Accenture PLC

• Tata Consultancy Services Limited

• Cognizant Technology Solutions Corporation

• Wipro Limited

• HCL Technologies Limited

• Capgemini SE

• IBM Corporation

• Infosys Limited

• DXC Technologies

• NTT Data Corporation 

IT Services Market Report Scope

Segments Covered in the Report 

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2017 to 2028. Grand View Research has segmented the global IT services market based on type and region:

• Type Outlook (Revenue, USD Million, 2017 - 2028)

  • Security Outsourcing

  • IT Support

  • Managed Security Services

  • Systems and Network Implementations

  • Security Strategy and Planning

• Regional Outlook (Revenue, USD Million, 2017 - 2028)

  • North America

    • U.S.

    • Canada

  • Europe

    • U.K.

    • Germany

    • France

  • Asia Pacific

    • China

    • India

    • Japan

  • Central & South America

    • Brazil

    • Argentina

  • Middle East & Africa

    • Saudi Arabia

    • South Africa