Information Technology Services Market Size 2024-2028 

The IT Services market size is projected to increase by USD 676.5 billion, at a CAGR of 8.64% between 2023 and 2028. The integration of artificial intelligence (AI) in information management is enhancing data analysis and decision-making processes, leading to greater efficiency and competitiveness. The expanding BFSI sector is driving the adoption of advanced information management solutions, such as log management, to meet regulatory requirements and improve customer service. Additionally, the increasing emphasis on eco-friendly initiatives is pushing the adoption of sustainable information management practices, reducing environmental impact. The rising demand for IoT and big data operations further drives the need for efficient information management solutions to handle the vast volumes of data generated by connected devices. This synergy between big data and AI is crucial for optimizing data handling and maximizing the value derived from information management systems.

What will be the Size of the Market During the Forecast Period?

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Market Segmentation

By End-user

The market share growth by the technology and telecommunication segment will be significant during the forecast period. Information technology (IT) consulting and other services consist primarily of consulting, systems integration, information management, and education and training assistance. Consulting services are advisory assistance that assists clients in evaluating various technology and methodology strategies, thereby facilitating the alignment of their network strategies with their business or process strategies. 

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Technology and telecommunication was the largest segment and was valued at USD 252.40 billion in 2018. The adoption of advanced technologies such as big data analytics, artificial intelligence, and cloud computing to reduce costs and improve operational efficiencies is increasing the demand for other assistance. Several businesses, including small and medium-sized enterprises (SMEs), lack the in-house technical expertise necessary for the planning, design, and implementation of these advanced technologies, prompting them to hire IT consulting firms with experience in the field. Thus, the increase in integration of technologies in IT consulting and other services segment boosts the demand for IT services, further propelling the growth of the market during the forecast period.

By Service

Information technology (IT) consulting and other services consist primarily of consulting, systems integration, information management, and education and training services. Consulting services are advisory assistance that assists clients in evaluating various technology and methodology strategies, thereby facilitating the alignment of their network strategies with their business or process strategies. In addition, the advancements in IT consulting assistance made by major companies, such as Microsoft, Accenture, and IBM, have facilitated the adoption of IT consulting service operating models in healthcare sectors. For instance, in October 2023, Microsoft Cloud for Healthcare is a cloud-based platform designed to address the unique needs of the healthcare industry, providing organizations with tools and capabilities to improve patient outcomes, streamline operations, and enhance collaboration among healthcare professionals. Such developments are expected to increase the demand, thereby driving market expansion during the forecast period. 

By Region

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APAC is estimated to contribute 39% to the growth of the global market during the forecast period. Technavio's analysts have provided extensive insight into the market forecast, detailing the regional trends and drivers influencing the market's trajectory throughout the forecast period. Contracts for IT services in APAC are growing rapidly compared to other areas. The expansion of assistance such as IT consulting, data processing, and outsourcing assistance is mostly attributable to the increasing usage of modern technology, such as cloud computing and analytics, and the expanding customer base. Major companies are rapidly extending their IT service offerings through mergers and acquisitions (M and As) to remain competitive. Increasing demand for modern information and communications technology infrastructure, stabilizing economic conditions, and rising public sector investments in IT further contribute to the expansion of the market.

Additionally, in countries such as Singapore, Taiwan, South Korea, and Indonesia, the requirement to maintain IT governance and compliance with IT rules and solutions also contributes to the expansion of the industry. Several developing nations in APAC are adopting IT management technologies and assistance. The region includes some of the world's fastest-growing economies, such as India and China, where the IT industry is expanding considerably and surpassing worldwide growth. All of these factors are expected to contribute to the expansion of the regional market during the forecast period.

Market Dynamics and Customer Landscape

The market is driven by the increasing demand for AI, big data analytics, and cybersecurity solutions across diverse sectors like banking, financial services and insurance (BFSI), manufacturing, and telecom. Cloud computing, blockchain, and IoT innovations continue to shape the industry, emphasizing the importance of digital technologies. Challenges include navigating data privacy regulations and fostering innovation while addressing the evolving landscape of cyber threats. As the information technology assistance market trends toward automation and machine learning, IT service providers play a crucial role in system integration, consulting, and managing connected devices. 

Key Market  Driver

The emergence of AI in information management is significantly driving market growth in the IT services sector. Businesses across various industries, including Banking and BFSI, are integrating AI solutions to leverage data and enhance operational efficiency. Incorporating machine learning and data analytics, companies are navigating the complexities of the big data analytics segment. Moreover, with a surge in blockchain adoption and increased reliance on cloud computing and assistance, the IT sector is witnessing robust growth. Connected devices and innovations like IoT play a pivotal role in shaping the industry's future. Cybersecurity assistance and solutions are becoming paramount due to evolving data privacy regulations, ensuring robust cybersecurity in the digital era.

Moreover, as businesses embrace digital technologies, including E-commerce, the market is propelled by continuous innovation and automation. The integration of robotics and advanced technologies in manufacturing and supply chain operations is a testament to the industry's evolution. System integration & consulting services further contribute to the seamless adoption of new technologies in the telecommunication and IT & telecom segments. In this dynamic landscape, managed assistance is emerging as a strategic choice for businesses seeking comprehensive IT solutions. Such factors are expected to drive the market growth during the forecast period. 

Significant Market Trends

Integration of big data in information provider offerings is an emerging trend shaping market growth. IT service providers have access to vast amounts of data that are analyzed to provide organizations with a variety of solutions. Typically, enterprises conduct big data analytics on their internal customer and operational database as well as external social media sites to comprehend the reach and impact of their products. The assistance provided by IT service providers is utilized to generate quantitative and qualitative insights. The combination of big data analytics and market research analysis yields useful insights for businesses.

For instance, many businesses use big data tools to conduct predictive analytics on their customer information databases. The results of such analyses can be added to the market survey data to derive predictive segmentation values. In addition, information service providers use tools such as Facebook Insights, Google Analytics, Open Calais, and Konstanz Information Miner (KNIME) Analytics to add value to their offerings. Thus, the integration of big data in information provider offerings boosts the growth of the market during the forecast period.

Major Market Restrain

Shortage of domain expertise is a significant challenge hindering market growth. Organizations derive tremendous benefits from IT assistance. In addition to domain expertise, they require the assistance of educated and qualified professionals with experience in logical and analytical thinking. Mathematicians, statisticians, data scientists, and data analysts, for example, are in short supply. Greater demand exists for domain-specific professionals than supply. This may make it difficult for IT service providers to meet the expanding needs of their clientele, thereby impeding the growth of the IT services market.

Furthermore, it is difficult to acquire and retain key employees in outsourcing destinations such as India and China due to the higher pay scales in the United States and Canada. The migration of key personnel to higher-income nations may result in a shortage of qualified professionals in outsourcing destinations. This could limit the growth of the market during the forecast period. 

Customer Landscape

The market forecasting report includes the adoption lifecycle of the market research and growth, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the market growth and forecasting report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth and trends strategies.

 Market Customer Landscape

Market Companies

Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.

Amazon.com Inc - The company offers IT services such as Amazon Web Services that provide a comprehensive suite of services, including computer, storage, databases, analytics, networking, mobile, security, and other services.

Market analysis and report of qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.

Segment Overview

The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2024 to 2028, as well as historical data from 2018 to 2022 for the following segment

• End-user Outlook
  • Technology and telecommunication
  • BFSI
  • Travel and hospitality
  • Healthcare
  • Media and others

• Service Outlook
  • IT consulting and other services
  • Internet services and infrastructure
  • Data processing and outsources services

• Region Outlook
  • North America
    • The U.S.
    • Canada
  • South America
    • Chile
    • Brazil
    • Argentina 
  • Europe
    • The U.K.
    • Germany
    • France
    • Rest of Europe
  • APAC
    • China
    • India
  • Middle East & Africa
    • Saudi Arabia
    • South Africa
    • Rest of the Middle East & Africa

Market Analyst Overview

The market is rapidly evolving with a focus on innovation & automation, data security, and privacy protection. Technologies like AI (Artificial Intelligence), machine learning (ML), and big data solutions are driving transformation across industries. SMEs (Small and Medium Enterprises) are increasingly leveraging IT support services and digital tools for digital transformation. Security strategies, including managed security services and network implementations, are crucial for IT companies. The market is also influenced by factors like lockdowns, social estrangement, and the shift towards remote working, driving demand for cloud-based IT services. Despite skills shortage, automation adoption and economic expansion are expected to propel the market forward.

The market is experiencing significant growth driven by key trends such as IoT (Internet of Things), AI and ML (Artificial Intelligence and Machine Learning), and innovation resources. Businesses are increasingly focusing on security strategies and network implementations to protect their data and systems. The market caters to a wide range of sectors, including IT & telecom, retail, and professional services, offering services like application management and data management. Large enterprises and SMEs (Small and Medium Enterprises) alike benefit from proactive IT services and on-premises deployment. With the rise of smart cities and environmental goals, the market is poised for further growth, especially in emerging countries.

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What are the Key Data Covered in this Market Research Report?

• CAGR of the market report forecast during the forecast period
• Detailed information on factors that will drive the growth of the market  between 2024 and 2028
• Precise estimation of the market  size and its contribution of the market in focus to the parent market
• Accurate predictions about upcoming trends and changes in consumer behavior
• Growth of the market across APAC, North America, Europe, South America, and Middle East and Africa
• Thorough market analysis and report of the market’s competitive landscape and detailed information about companies
• Comprehensive analysis of factors that will challenge the growth of Industry companies

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