Information technology (IT) has evolved from being just a support system for businesses to a key driver in the transformation of organizations across various verticals. This shift from the traditional business model to technology driven, cloud-based business models has led to huge demand for IT consulting services, thereby boosting their market value. The global IT consulting services market, which was valued at $1 trillion in 2015, is poised to grow at a CAGR of around 4% by 2020.
Among the various factors driving the IT consulting service market, mergers and acquisitions (M&As) have emerged as a major contributor to the growth of this industry. M&A – a strategy that is being followed by several large organizations, has propelled the demand for IT consulting services. This is more so due to the fact that more than 60% of investments related to mergers and acquisitions fail to achieve the anticipated synergy due to ineffective integration of systems and cultural issues. As IT consulting companies effectively integrate legacy systems and technologies regardless of the size and geographical location of organizations, there has been a steep increase in demand for these services. This is further reflected by the latest trend of IT giants offshoring most of their operations to India, the Philippines and several other APAC nations.
Along with large numbers of M&As across the globe, advancements in technology are also one of the driving factors of the global IT consulting services market. With digital economy becoming more than just a catch-phrase, companies are looking for ways in which technology can be used to transform their businesses without compromising on capital expenses and quality. Cloud computing, big data services and mobile based applications are some of the many technological advances that are readily being adopted. IT consulting companies help in simplifying the transformation process by providing flexibility, better data security, operational efficiency and storage space.
Also, it is important to understand that a number of organizations – whether they are well-established companies or startups, often lack the skilled workforce needed to handle and integrate new technologies into the system and address cyber security concerns. This lack of in-house expertise (especially in the case of the banking and financial sectors) necessitates the dependency on IT consulting companies for management of IT-related issues and implementation of new technologies.
Most of all, the need for scalable and robust IT architecture in order to keep up with changing market dynamics and emerging technology trends, has made IT consulting services a critical part of organizations across industries. IT consulting service providers not only help in identifying the most viable IT architecture that fits specific business requirements, but also help in formulating strategies to achieve IT objectives.
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