IT Services - United Kingdom

United Kingdom

Revenue in the IT Services market is projected to reach €97.61bn in 2024.
IT Outsourcing dominates the market with a projected market volume of €37.09bn in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 7.06%, resulting in a market volume of €137.30bn by 2029.
The average Spend per Employee in the IT Services market is projected to reach €2.81k in 2024.
In global comparison, most revenue will be generated in the United States (€484.00bn in 2024).

Key regions: United States, China, India, Japan, Germany

Definition:
The IT Services market encompasses a wide range of services used by organizations to create, manage, and deliver information, and it includes services that provide assistance with various other business functions. The primary goal of IT services is to ensure that information technology infrastructure, applications, and systems are effectively implemented, operated, and optimized to support an organization's business objectives and requirements. The specific range of services offered may vary depending on the service provider and the client's requirements.

Structure:

IT Services contains four distinct markets that are based on different services:

IT Consulting & Implementation covers advisory services that help businesses evaluate their technology strategies and align them with their business strategies or internal processes.
Business Process Outsourcing (BPO) refers to the transfer of entire business processes or individual activities from a company to a third party and is often IT based. BPO covers a wide variety of business processes, usually either in the back office (e.g., human resources) or in the front office (e.g., customer service in call centers).
IT Outsourcing refers to the external contracting of all IT-related services instead of relying on company-owned resources. In an IT context, these activities include IT administration, IT application, and web hosting services.
The Other IT Services market covers revenues for areas that are not specifically mentioned in the other markets, such as system integration, software installation and support, and IT education and training.

Additional Information:

The IT Services market comprises revenues, revenue change, average spend per employee, and a list of the key players in the market and their consolidated revenues. Market values represent revenues that are generated by primary vendors either directly or through distribution channels at the manufacturer price level (excluding VAT). Reported market revenues include spending by enterprises (B2B) and governments (B2G). Detailed definitions of each market can be found on the respective page where the market data is displayed. Key players in the market include IBM, Cognizant, Hewlett Packard Enterprise, and TCS.

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Marché

Région

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Monnaie

Analyst Opinion

The IT Services market in United Kingdom has been experiencing significant growth in recent years, driven by several factors.

Customer preferences: Businesses in the United Kingdom are increasingly looking to outsource their IT services to third-party providers, as this allows them to focus on their core competencies and reduce costs. Additionally, with the rise of cloud computing and other digital technologies, there is a growing demand for IT services that can help companies manage and optimize their technology infrastructure.

Trends in the market: One major trend in the IT Services market in United Kingdom is the shift towards digital transformation. As more businesses adopt cloud computing, big data analytics, and other digital technologies, there is a growing need for IT services that can help companies manage and optimize these technologies. Another trend is the increasing adoption of managed IT services, which provide businesses with a range of IT services on a subscription basis.

Local special circumstances: The United Kingdom has a highly developed IT industry, with a large number of technology companies and startups. This has created a highly competitive market for IT services, with many providers offering a wide range of services to businesses of all sizes. Additionally, the United Kingdom has a highly skilled workforce, with many IT professionals trained in the latest technologies and best practices.

Underlying macroeconomic factors: The IT Services market in United Kingdom is also influenced by broader macroeconomic factors, such as the country's economic growth, regulatory environment, and international trade relations. For example, changes in government policies related to data privacy and cybersecurity can have a significant impact on the IT Services market, as can changes in trade relations with other countries. Additionally, economic downturns or recessions can lead to a decrease in demand for IT services as businesses look to cut costs.

Methodology

Data coverage:

The data encompasses B2G, B2B, and B2C enterprises. Figures are based on enterprises' technology spending on products, consulting, and outsourcing services.

Modeling approach / Market size:

Market sizes are determined through a combined top-down and bottom-up approach, building on a specific rationale for each market segment. As a basis for evaluating markets, we use annual financial reports of key players in the industry, Statista's primary research and surveys, and IT associations. In addition, we use relevant key market indicators and data from country-specific associations, such as GDP, internet users, and telecommunication. This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, the exponential trend smoothing method is used based on the market data characteristics. The main drivers are the GDP and its sector composition, internet penetration, the level of digitization, and the attitude toward IT security.

Additional notes:

The data is modeled using current exchange rates. The market is updated twice a year in case market dynamics change. The impact of the COVID-19 pandemic and the Russia-Ukraine war is considered at a country-specific level.