IT Services Market Report by Service Type (Professional Services, Managed Services), Enterprise Size (Small and Medium-sized Enterprises, Large Enterprises), Deployment Mode (On-premises, Cloud-based), End Use Industry (BFSI, Telecommunication, Healthcare, Retail, Manufacturing, Government, and Others), and Region 2024-2032

IT Services Market Report by Service Type (Professional Services, Managed Services), Enterprise Size (Small and Medium-sized Enterprises, Large Enterprises), Deployment Mode (On-premises, Cloud-based), End Use Industry (BFSI, Telecommunication, Healthcare, Retail, Manufacturing, Government, and Others), and Region 2024-2032

Report Format: PDF+Excel | Report ID: SR112024A12260
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Global IT Services Market:

The global IT services market size reached US$ 1,132.9 Billion in 2023. Looking forward, IMARC Group expects the market to reach US$ 2,183.1 Billion by 2032, exhibiting a growth rate (CAGR) of 7.56% during 2024-2032. The increasing emphasis on cloud computing, rising demand for robust IT security services due to escalating cybersecurity concerns, and rapid technological advancements are some of the major factors propelling the market.

Report Attribute
 Key Statistics
Base Year
2023
Forecast Years
2024-2032
Historical Years
2018-2023
Market Size in 2023 US$ 1,132.9 Billion
Market Forecast in 2032 US$ 2,183.1 Billion
Market Growth Rate 2024-2032 7.56%


Global IT Services Market Analysis:

  • Major Market Drivers: The escalating number of businesses seeking expert help in software development, system integration, and data management on account of the elevating levels of digitization is primarily driving the growth of the global IT services market. Additionally, the increasing complexities of technology infrastructures and the need to streamline business operations are prompting various organizations to outsource IT management and support.
  • Key Market Trends: The rapid expansion of cloud computing is compelling numerous companies to leverage cloud-based IT services for scalability and cost-effectiveness, which is acting as a significant growth-inducing factor for the market.
  • Competitive Landscape: Some of the major market players in the global IT services include Accenture plc, Capgemini SE, Cisco Systems Inc., Cognizant, Dell Technologies Inc., HCL Technologies Limited, Hewlett Packard Enterprise Company, Infosys Limited, Microsoft Corporation, TATA Consultancy Services Limited, Toshiba Corporation, Wipro Limited, among many others.
  • Geographical Trends: North America accounted for the largest share in the global IT service market. The region has a strong digital infrastructure which is fostering demand for advanced IT solutions, cloud services, and cybersecurity measures, thereby propelling the market growth.
  • Challenges and Opportunities: The IT services industry operates in a fast-paced environment where new technologies emerge frequently. Staying updated with the latest trends, such as AI, cloud computing, IoT, and cybersecurity, requires constant learning and adaptation. However, the introduction of advanced cloud-based big data analytics solutions, with their scalability, flexibility, and cost-effectiveness advantages, is allowing market players to navigate these challenges successfully.
     

IT Services Market


Global IT Services Market Trends:

Escalating Demand for Digital Transformation

Rapid technological advancements are compelling businesses to embark on digital transformation journeys to remain competitive. Trends like 5G, Blockchain, AR, and AI, are prompting organizations to recognize the imperative of evolving their operations, processes, and customer interactions through technology. Moreover, the amount of data generated worldwide is increasing significantly. According to Seagate Technology PLC, the volume of data generated globally in 2020 was approximately 47 zettabytes and is expected to increase to 163 zettabytes in 2025. To optimally utilize these data reserves, IT service providers must develop smart IT services and platforms. IT services providers are guiding companies through this transition, offering expertise in areas such as software modernization, data analytics, and cloud integration.

Rising Cybersecurity Concerns

With the expanding digital ecosystems, the risks associated with cyber threats and data breaches are also rising.  Moreover, growing data breaches, cost concerns over product customization, and data migration are some of the reasons posing a threat to the IT services market outlook. For instance, in July 2022, T-Mobile agreed to pay US$ 350 Million to settle multiple lawsuits in the US.  These lawsuits came after a data breach disclosed last year that affected millions of people.
Moreover, the increasing cases of trusted insider threats are also augmenting the need for robust IT cybersecurity solutions to mitigate the risking of insider trading and disclosure of confidential information to the employees. Insider risks account for almost 25% of data breaches. Additionally, the growing emphasis on cybersecurity compliance and regulations is further amplifying the demand for specialized IT services that provide protection against cyber threats. For instance, in a special petition filed in 2021, the Supreme Court of India ruled that cyber attacks and data thefts are a crime under the Information Technology Act (IT Act) of 2000 and the Indian Penal Code (IPC).

Increasing Adoption of Cloud Computing

According to the IT services market overview, the revolution brought about by cloud computing is a key driver propelling the market to new heights. Moreover, IT cloud services are witnessing significant growth due to the massive cloud deployments across the end-user industries. For Instance, In Q4 2023, global cloud infrastructure service spending grew by $12 billion compared to Q4 2022, bringing total spending to $73.7 billion for the three months ended December 31. Enterprises are seeking to leverage the scalability, flexibility, and cost savings offered by cloud platforms. As a result, the demand for IT services related to cloud strategy, migration, and management is bolstering. Additionally, companies are also transforming towards implementing hybrid cloud in their business operations. For instance, in May 2023, IBM unveiled IBM Hybrid Cloud Mesh, a SaaS offering that is developed to facilitate enterprises to obtain management to their hybrid multi-cloud infrastructure. The IBM Hybrid Cloud Mesh is designed to make it easier for modern businesses to connect their apps across different types of cloud systems. It utilizes "Application-Centric Connectivity" to automate the process, management, and observability of application connectivity in public and private clouds. This helps companies manage their infrastructure, even when it's spread out across different cloud setups.

IT Services Industry Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the global IT services market report, along with forecasts at the global, regional, and country levels for 2024-2032. Our report has categorized the market based on service type, enterprise size, deployment mode, and end use industry.

Breakup by Service Type:

IT Services Market

  • Professional Services (System Integration and Consulting)
  • Managed Services
     

Professional Services represent the most popular service type

The report has provided a detailed breakup and analysis of the market based on the service type. This includes professional services (system integration and consulting) and managed services. According to the report, professional services (system integration and consulting) represented the largest segment.

Professional services cater to businesses seeking expert guidance in navigating complex technology landscapes, ensuring seamless integration of diverse systems, and optimizing operations for efficiency. Moreover, with the implementation of the General Data Protection Regulation (GDPR), NIST Cybersecurity Framework is compelling businesses to opt for IT professional services for regulatory adherence. This addresses the increasing demand for professional services to support digital transformation initiatives.

Furthermore, managed services offer ongoing support and maintenance, enabling organizations to offload IT management responsibilities, enhance security, and achieve cost-effective operations.

Breakup by Enterprise Size:

  • Small and Medium-sized Enterprises
  • Large Enterprises
     

The large enterprises segment accounted for the largest market share

A detailed breakup and analysis of the market based on the enterprise size has also been provided in the report. This includes small and medium-sized enterprises and large enterprises. According to the report, large enterprises accounted for the largest segment.

Large enterprises with complex infrastructures require specialized services, such as managed services and cybersecurity solutions, to optimize their extensive operations and safeguard critical data. The rising need for seamless communication, cloud integration, and advanced analytics is propelling the adoption of IT services. Various large enterprises are signing deals with IT service providers to reduce software costs and enable their employees to become familiar with professional service types quickly. For instance, in March 2022, Nividous Software Solutions announced a collaboration with Damco Types for streamlining non-core and core business processes across various industries using intelligent automation processes.

On the other hand, Small and medium-sized enterprises (SMEs) seek cost-effective and scalable solutions to enhance their operations, often relying on IT services for tailored software development, system integration, and technology consulting that align with their evolving needs.

Breakup by Deployment Mode:

  • On-premises
  • Cloud-based
     

Cloud-based accounts for the majority of the market share

A detailed breakup and analysis of the market based on the deployment mode has also been provided in the report. This includes on-premises and cloud-based. According to the report, cloud-based accounted for the largest IT services market share.

The cloud-based model offers scalability, flexibility, and remote accessibility, aligning with the growing preference for agile operations and cost-effective solutions. Moreover, large businesses are rapidly adopting cloud services due to on-demand availability. For instance, in April 2023, Accenture plc and Microsoft Corporation, together with joint venture named Avanade, completed the migrations of business operations over the cloud for Unilever. This helped Unilever to meet the changing consumer needs quicky, market products and services faster, and allocate resources more effectively.

On the other hand, on-premises solutions provide businesses with direct control over their IT infrastructure, appealing to sectors with stringent data privacy regulations and customized operational needs. This fuels the demand for services such as system integration, consulting, and software development to optimize on-premises setups.

Breakup by End Use Industry:

  • BFSI
  • Telecommunication
  • Healthcare
  • Retail
  • Manufacturing
  • Government
  • Others
     

According to the report, BFSI accounted for the largest market share

A detailed breakup and analysis of the market based on the end use industry has also been provided in the report. This includes BFSI, telecommunication, healthcare, retail, manufacturing, government, and others. According to the report, the BFSI sector represented the largest segment.

The BFSI sector is increasingly deploying IT services to facilitate secure transactions, data management, and compliance adherence. For instance, a leading investment bank has been using a public cloud provider for regulatory reporting solutions. It is conducting pilots with two vendors for a cloud-based infrastructure-as-a-service solution. In addition to this, a major bank in North America is currently using private cloud and planning to deploy public cloud as well, primarily using software-as-a-service and infrastructure-as-a-service. The bank expects to be multi-cloud in the next four years.

Telecommunication is also heavily relying on IT services for network infrastructure, IoT connectivity, and digital transformation. Healthcare is leveraging IT services for electronic health records, telemedicine, and patient data security. The retail sector is thriving on e-commerce platforms, digital payment integration, and customer experience enhancement through the integration of IT solutions.

Furthermore, the manufacturing sector benefits from IT services for supply chain optimization, process automation, and Industry 4.0 implementation. Government agencies across the world are utilizing IT services for citizen services digitization, e-governance, and cybersecurity measures.

Breakup by Region:

IT Services Market

  • North America
    • United States
    • Canada
  • Europe
    • Germany
    • France
    • United Kingdom
    • Italy
    • Spain
    • Others
  • Asia Pacific
    • China
    • Japan
    • India
    • South Korea
    • Australia
    • Indonesia
    • Others
  • Latin America
    • Brazil
    • Mexico
    • Others
  • Middle East and Africa
     

According to the report, North America accounted for the largest IT services market share

The report has also provided a comprehensive analysis of all the major regional markets, which include North America (the United States and Canada); Europe (Germany, France, the United Kingdom, Italy, Spain, and others); Asia Pacific (China, Japan, India, South Korea, Australia, Indonesia, and others); Latin America (Brazil, Mexico, and others); and the Middle East and Africa.

According to the IT services market statistics, North America held the biggest share in the market since the region has a strong digital infrastructure, fostering demand for advanced IT solutions, cloud services, and cybersecurity measures, thereby propelling the market growth. The region is facing escalating cases of data breaches in recent years. For instance, according to the Identity Theft Resource Center, in 2022, the number of data compromises in the United States totaled 1802 cases. Meanwhile, nearly 422 million individuals were severely affected in the same year by data compromises, including data breaches, exposure, and leakage. Such cases are anticipated to bolster the adoption of IT cybersecurity solutions in the region.

Furthermore, the Asia Pacific region showcases rapid digital transformation, driving IT services adoption for expanding e-commerce, mobile connectivity, and tech-driven industries. Moreover, Europe emphasizes data privacy and compliance, fueling the demand for IT services for GDPR adherence, digitalization initiatives, and IT modernization.

Latin America embraces IT services to bridge digital divides, enhance connectivity, and optimize business operations. The Middle East and Africa region invest in IT services to diversify economies, elevate e-governance, and improve IT security.

Competitive Landscape:

The market is experiencing steady growth as various key players are driving innovation through a range of cutting-edge solutions. Companies are using various techniques to enhance market penetration and boost their position in the competitive industry. For instance, in June 2023, IBM Corporation acquired Agyla SAS, a cloud professional services company based in France. Moreover, advancements in artificial intelligence (AI) and machine learning (ML) are revolutionizing IT operations with predictive analytics, automation, and intelligent decision-making. We also expect the market to witness new entrants, consolidation of product portfolios, and a rise in strategic partnerships and collaborations amongst key players.

The market research report has provided a comprehensive analysis of the competitive landscape in the market. Detailed profiles of all major companies have also been provided. Some of the key players in the market include:

  • Accenture plc
  • Capgemini SE
  • Cisco Systems Inc.
  • Cognizant
  • Dell Technologies Inc.
  • HCL Technologies Limited
  • Hewlett Packard Enterprise Company
  • Infosys Limited
  • Microsoft Corporation
  • TATA Consultancy Services Limited
  • Toshiba Corporation
  • Wipro Limited
     

(Please note that this is only a partial list of the key players, and the complete list is provided in the report.)

Global IT Services Market News:

  • February 2024: Skyhigh Security launched the addition of managed & professional IT services to its Altitude Partner Program. These professional services will help companies complete their product development and resell SkyHigh Security solutions.
  • August 2023: Rackspace Technology partnered with Google Cloud to help accelerate VM migrations. This collaboration will migrate virtual machines to Google Cloud, offering efficient and innovative solutions to businesses.
  • August 2023: HCLTech signed an agreement with TIBCO Solutions, a cloud software group. According to this agreement, HCLTech will help implement, modernize, upgrade, and provide services for TIBCO products across the globe. This, in turn, will also help HCL strengthen its professional services portfolio.

Global IT Services Market Report Scope:

Report Features Details
Base Year of the Analysis 2023
 Historical Period 2018-2023
Forecast Period 2024-2032
Units US$ Billion
Scope of the Report Exploration of Historical and Forecast Trends, Industry Catalysts and Challenges, Segment-Wise Historical and Predictive Market Assessment: 
  • Service Type
  • Enterprise Size
  • Deployment Mode
  • End Use Industry
  • Region 
Service Types Covered
  • Professional Services: System Integration, Consulting
  • Managed Services 
Enterprise Sizes Covered Small and Medium-sized Enterprises, Large Enterprises
Deployment Modes Covered On-premises, Cloud-based
End Use Industries Covered BFSI, Telecommunication, Healthcare, Retail, Manufacturing, Government, Others
Regions Covered Asia Pacific, Europe, North America, Latin America, Middle East and Africa
Countries Covered United States, Canada, Germany, France, United Kingdom, Italy, Spain, China, Japan, India, South Korea, Australia, Indonesia, Brazil, Mexico
Companies Covered Accenture plc, Capgemini SE, Cisco Systems Inc., Cognizant, Dell Technologies Inc., HCL Technologies Limited, Hewlett Packard Enterprise Company, Infosys Limited, Microsoft Corporation, TATA Consultancy Services Limited, Toshiba Corporation, Wipro Limited, etc.
Customization Scope 10% Free Customization
Report Price and Purchase Option Single User License: US$ 3899
Five User License: US$ 4899
Corporate License: US$ 5899
Post-Sale Analyst Support 10-12 Weeks
Delivery Format PDF and Excel through Email (We can also provide the editable version of the report in PPT/Word format on special request)


Key Questions Answered in This Report:

  • How has the global IT services market performed so far, and how will it perform in the coming years?
  • What are the drivers, restraints, and opportunities in the global IT services market?
  • What is the impact of each driver, restraint, and opportunity on the global IT services market?
  • What are the key regional markets?
  • Which countries represent the most attractive IT services market?
  • What is the breakup of the market based on the service type?
  • Which is the most attractive service type in the IT services market?
  • What is the breakup of the market based on the enterprise size?
  • Which is the most attractive enterprise size in the IT services market?
  • What is the breakup of the market based on the deployment mode?
  • Which is the most attractive deployment mode in the IT services market?
  • What is the breakup of the market based on the end use industry?
  • Which is the most attractive end use industry in the IT services market?
  • What is the competitive structure of the global IT services market?
  • Who are the key players/companies in the global IT services market?


Key Benefits for Stakeholders:

  • IMARC’s industry report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the IT services market from 2018-2032.
  • The research report provides the latest information on the market drivers, challenges, and opportunities in the global IT services market.
  • The study maps the leading, as well as the fastest-growing, regional markets. It further enables stakeholders to identify the key country-level markets within each region.
  • Porter's five forces analysis assist stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the IT services industry and its attractiveness.
  • Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.

Need more help?

  • Speak to our experienced analysts for insights on the current market scenarios.
  • Include additional segments and countries to customize the report as per your requirement.
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IT Services Market Report by Service Type (Professional Services, Managed Services), Enterprise Size (Small and Medium-sized Enterprises, Large Enterprises), Deployment Mode (On-premises, Cloud-based), End Use Industry (BFSI, Telecommunication, Healthcare, Retail, Manufacturing, Government, and Others), and Region 2024-2032
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