The Global IT Services Market has continued to grow through the recent economic crisis, and is expected to grow at a CAGR of 5.40 percent during the period 2013-2018.
The demand for IT services in the Global IT Services market originates primarily from large corporations, SMEs, and government organizations.
IT services help organizations in creating, managing, and optimizing information and business processes with business and technical expertise. IT services also aid in managing IT systems and are process focused. These services focus on providing a framework to structure IT-related activities.
A wide range of IT services are available with which organizations streamline their processes and integrate their systems. These services help organizations reinvent, develop a more economical cost structure, and centralize their processes.
TechNavio analysts have identified a number of trends in the IT Services Market expected to aid growth. Below, we detail three of those trends:
Increased Role of Cloud-based Services
Cloud computing is an emerging technology that enables both IT infrastructure and software to be directly delivered over the internet as a service. The ubiquity of the internet and widespread availability of high-speed broadband connections are primary factors driving the shift toward cloud computing services.
Cloud computing allows enterprises to access technologies such as infrastructure, platforms, and software that need proper IT support. The rapid rise in popularity of cloud services has led to the development of various platforms such as private cloud, public cloud, and hybrid cloud. SaaS is the fastest growing segment in cloud computing, followed by IaaS.
Currently, the growth is driven by the demand in developed nations such as North America and Europe. Maximum uptime, access to the most advanced technologies, and reduction of maintenance and resource expenses are the benefits of adopting cloud services within organizations.
Increased Expenditure over Big Data and Analytics Projects
With the adoption of technology and data centers, most of the enterprises are witnessing the availability of an abundance of data. Companies are increasingly focusing on analyzing and using these data in a timely fashion to gain competitive advantages in terms of cost and time. These companies are recognizing the prospect of big data and designing their IT strategies to capture such opportunities. For instance, big data can help government banks to spot fraudulent transactions.
In 2014, IBM introduced new software and services to help organizations avert fraud and financial crimes by using big data and analytics to address approximately US$3.5 trillion of losses each year. With the increasing amount of digitization, countries worldwide are dealing with the digitization of information such as the digital records of citizens.
To make the most of this data, these countries are focusing on building big data infrastructures, which is increasing the overall cost of IT services. This has increased the awareness of governments of the need to outsource data analytics activities.
Rise in Offshore Opportunities
Offshore outsourcing of IT services is being seen as a profitable business model because it provides clients with the opportunity to establish an economical cost structure. Although India still remains the top offshore ITO destination, clients worldwide are looking to explore other destinations such as Brazil, the Philippines, Singapore, and Poland.
These destinations are gaining popularity because of the improvements in their education systems and the development of the overall infrastructures. With the 24/7 availability of high-quality and low-cost services, the Global ITO segment is expected to grow in the coming years.
