Global IT professional services market size is expected to reach USD 1.07 trillion by 2025 with a CAGR of 8.4%, according to a new study conducted by Grand View Research, Inc. Growth in demand for knowledge-based services and preference for flexible and customizable professional services are driving the global market.
Enterprises across various end-use industries are under mounting pressures to reduce capital expenditures and increase operational efficiencies. The adoption of IT professional services has been growing as these services can help reduce the overall IT costs, and in turn, the capital expenditure. Benefits associated with these services, such as ease of deployment, lesser risk, and higher security, have also been aiding the market growth.
Incumbents of the BFSI, retail, telecommunication, and IT industries prefer cloud-based services. As the number of enterprises opting for digital transformation continues to increase, vendors are finding it more convenient to deliver IT services through the cloud technology. It also allows providers to expand their geographic reach and offer scalable services, as well as on-demand support.
Tech companies, marketing firms, and consulting companies are the largest users of IT professional services. Digitization, big data analytics, and Business Intelligence (BI) are some of the key functionalities being outsourced to reduce the administrative costs and overheads. However, concerns over data security and protection of privacy and confidentiality are some of the factors that may hinder the market growth.
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Further key findings from the study suggest:
- The market is significantly diverse and fragmented but led by a few well-established companies, including Accenture PLC, Capgemini SA, IBM Corp., and Microsoft Corporation
- The ability of the vendors to provide cloud-based, tailored, and secured solutions would influence the customers’ buying decisions
- The cloud segment is expected to witness the fastest CAGR over the forecast period
- Technology and consulting companies have emerged as the largest adopters of IT professional services and would continue the trend in the years to come
- The North America regional market led the global IT professional service market in 2017 and is expected to register a CAGR of 7.5% over the forecast period.
- However, Asia Pacific is anticipated to be the fastest-growing regional market with a CAGR of 9.6% during the forecast period