North America IT Services Market by Type (Professional, Managed, and Telecom), Deployment Type (On-Premise and Cloud), Organization Size (SMBS and Enterprises), Business Function, and Industry Vertical - Global Forecast to 2021

MarketsandMarkets estimates the North America IT services market to grow from USD 175.2 Billion in 2016 to USD 261.5 Billion by 2021, at a Compound Annual Growth Rate (CAGR) of 8.3% from 2016 to 2021.

Objectives of the study:

The main objective of this report is to define, describe, and forecast the North America IT services market on the basis of segments that include types, deployment types, organization size, business functions, and verticals. The report provides detailed information regarding the major factors influencing the growth of the market (drivers, restraints, opportunities, and industry-specific challenges). The report attempts to forecast the market size with respect to the North American region. The report also provides the North America IT services market in the U.S. and Canada. The report strategically profiles key players and comprehensively analyzes their core competencies. This report also tracks and analyzes the competitive developments, such as mergers & acquisitions, new product developments, and Research & Development (R&D) activities in the market.

The research methodology used to estimate and forecast the North America IT services market begins with the collection and analysis of data on key vendor product offerings and business strategies through secondary research, such as press releases; investor presentations of companies; white papers from World Economic Forum; technology journals; associations (Technology Services Industry Association); and articles from recognized authors, directories, and databases. The vendor offerings have also been taken into consideration to determine the market segmentation. The bottom-up procedure was employed to arrive at the total market size of the North America IT services market from the revenue of the key service providers in the market. After arriving at the overall market size, the total market was split into several segments and subsegments, which were then verified through primary research by conducting extensive interviews with key people, such as Chief Executive Officers (CEOs), Vice Presidents (VPs), directors, and executives. The data triangulation and market breakdown procedures were employed to complete the overall market engineering process and to arrive at the exact statistics for all segments and subsegments. The breakdown of profiles of primary is depicted in the figure given below:

The breakdown of profiles of primary is depicted in the figure given below:

To know about the assumptions considered for the study, download the pdf brochure

Industry Ecosystem

Some of the key service providers in the market ecosystem that offer major IT services mapped to key product offerings are given below:

• Managed/Professional IT Services: IBM Corporation (U.S.), HP Enterprise (U.S.), Accenture PLC (Ireland), Infosys (India), Wipro Limited (India), Cognizant Technology Solutions Corporation (U.S.), HCL Technologies Limited (India), Oracle (U.S.), Tata Consultancy Services (India), Tech Mahindra (India), Fujitsu (Japan), Capgemini (France), Hitachi Consulting (U.S.), Unisys Corporation (U.S.), and Dimension Data (South Africa).
• Telecom Service Providers: Nokia Networks (Finland), Ericsson (Sweden), and Huawei Technologies Limited (China).

Key Target Audience

• IT service providers
• Professional service providers
• Telecommunication service providers
• Government agencies
• Information technology associations
• Managed service providers
• Cloud service providers

Scope of the Report

The research report segments the North America IT services market into the following subsegments:

• By Type
  • Professional services
  • Managed services
  • Telecom services
• By Deployment Type
  • On-premises
  • Cloud
• By Organization Type
  • Small and medium-sized businesses
  • Enterprises
• By Business Function
  • Finance and accounting
  • Human resource
  • Sales and marketing
  • Supply chain management
  • Operations and support
  • Manufacturing
  • Others (R&D and transportation & logistics)
• By Industry Vertical
  • Banking, financial services, and insurance (BFSI)
  • Media and Entertainment
  • Government and defense
  • Communication and technology
  • Consumer goods and Retail
  • Healthcare
  • Others (automotive, chemicals, hospitality, travel, energy and utilities, transportation and logistics, oil and gas and education)

Available Customizations

With the given market data, MarketsandMarkets offers customizations as per the company’s specific needs. The following customization options are available for the report:

Product Analysis

• Product matrix that gives a detailed comparison of product portfolio of each company

Company Information

• Detailed analysis and profiling of additional market players

Table of Contents

1 Introduction (Page No. - 15)
    1.1 Objectives of the Study
    1.2 Market Definition
    1.3 Market Scope
           1.3.1 Markets Covered
           1.3.2 Years Considered for the Study
    1.4 Currency
    1.5 Limitations
    1.6 Stakeholders

2 Research Methodology (Page No. - 18)
    2.1 Research Data
           2.1.1 Secondary Data
                    2.1.1.1 Key Data From Secondary Sources
           2.1.2 Primary Data
                    2.1.2.1 Key Data From Primary Sources
                    2.1.2.2 Key Industry Insights
                    2.1.2.3 Breakdown of Primaries
    2.2 Market Size Estimation
           2.2.1 Bottom-Up Approach
           2.2.2 Top-Down Approach
    2.3 Market Breakdown and Data Triangulation
    2.4 Research Assumptions

3 Executive Summary (Page No. - 26)

4 Premium Insights (Page No. - 28)
    4.1 Attractive Market Opportunities in the North America IT Services Market
    4.2 Market Snapshot By Service Type, 2016–2021
    4.3 Market Snapshot By Deployment Type, 2016–2021
    4.4 Market Snapshot By Vertical and Business Function, 2016

5 Market Overview (Page No. - 31)
    5.1 Introduction
    5.2 Market Evolution
    5.3 Market Segmentation
           5.3.1 By Service Type
           5.3.2 By Business Function
           5.3.3 By Organization Size
           5.3.4 By Deployment Type
           5.3.5 By Vertical
    5.4 Market Dynamics
           5.4.1 Drivers
                    5.4.1.1 Increasing Popularity of Cloud Services
                    5.4.1.2 Growing Ict Spend and Rising Adoption of IT Services Among Smbs
           5.4.2 Restraints
                    5.4.2.1 Concern Over Privacy and Security
                    5.4.2.2 Doubts Related to Efficiency and Effectiveness of IT Services
           5.4.3 Opportunities
                    5.4.3.1 Rising Demand for System Integrators
                    5.4.3.2 Potential Opportunities in Exploring Next-Generation IT Technology in BFSI and Healthcare Sectors
           5.4.4 Challenges
                    5.4.4.1 Less Professionals With Latest Technological Expertise
                    5.4.4.2 Complexities Involved With the Integration of Third-Party IT Infrastructure With That of the Organization

6 Industry Trends (Page No. - 40)
    6.1 Introduction
    6.2 Value Chain Analysis
    6.3 Strategic Benchmarking

7 Technology Innovation, Social, Mobility, Analytics, and Cloud (Page No. - 42)
    7.1 Introduction
    7.2 Social, Mobility, Analytics, and Cloud
    7.3 Recent Innovations

8 North America IT Services Market Analysis, By Service Type (Page No. - 45)
    8.1 Introduction
    8.2 Professional Services
           8.2.1 System Integration
                    8.2.1.1 Application Integration
                               8.2.1.1.1 Application Development
                               8.2.1.1.2 Application Testing
                               8.2.1.1.3 Application Lifecycle Management
                    8.2.1.2 Infrastructure Integration
                               8.2.1.2.1 Data Center
                               8.2.1.2.2 Security
                               8.2.1.2.3 Mobility
                               8.2.1.2.4 Network
                               8.2.1.2.5 Others (Communication and Information Management)
           8.2.2 Training and Education
           8.2.3 Consulting
    8.3 Managed Services
           8.3.1 Managed Security
           8.3.2 Managed Data Center
           8.3.3 Managed Network
           8.3.4 Managed Mobility
           8.3.5 Others (Managed Communication and Information)
    8.4 Telecom Services

9 North America IT Services Market Analysis, By Organization Size (Page No. - 61)
    9.1 Introduction
    9.2 Small and Medium Businesses
    9.3 Enterprises

10 North America IT Services Market Analysis, By Deployment Type (Page No. - 64)
     10.1 Introduction
     10.2 On-Premises
     10.3 Cloud

11 North America IT Services Market Analysis, By Business Function (Page No. - 67)
     11.1 Introduction
     11.2 Finance and Accounting
     11.3 Human Resources
     11.4 Sales and Marketing
     11.5 Supply Chain Management
     11.6 Operations and Support
     11.7 Manufacturing

12 North America IT Services Market Analysis, By Vertical (Page No. - 71)
     12.1 Introduction
     12.2 Banking, Financial Services, and Insurance
     12.3 Media and Entertainment
     12.4 Government and Defense
     12.5 Communication and Technology
     12.6 Consumer Goods and Retail
     12.7 Healthcare
     12.8 Others

13 Competitive Landscape (Page No. - 75)
     13.1 Overview
     13.2 North America IT Services Market: MnM Vendor-Dive Comparison
     13.3 Competitive Situations and Trends
             13.3.1 New Product Launches/Upgradation
             13.3.2 Partnerships, Agreements, and Collaborations
             13.3.3 Mergers and Acquisitions
             13.3.4 Expansions

14 Company Profiles (Page No. - 84)
     14.1 Introduction
(Business Overview, Products & Services, Key Insights, Recent Developments, SWOT Analysis, Ratio Analysis, MnM View)*
     14.2 Hewlett Packard Enterprise
     14.3 Accenture PLC
     14.4 Cognizant Technology Solutions Corporation
     14.5 Wipro Limited
     14.6 HCL Technologies Limited
     14.7 Infosys
     14.8 IBM Corporation
     14.9 Oracle Corporation
     14.10 Tata Consultancy Services
     14.11 Tech Mahindra
     14.12 Fujitsu
     14.13 Capgemini
     14.14 Ericsson
     14.15 Huawei Technologies Co. Ltd.
     14.16 Nokia Networks

15 Key Innovators (Page No. - 137)
     15.1 Dimension Data
     15.2 Unisys Corporation
     15.3 Hitachi Consulting Corporation

*Details on Business Overview, Products & Services, Key Insights, Recent Developments, SWOT Analysis, MnM View Might Not Be Captured in Case of Unlisted Companies.

16 Appendix (Page No. - 143)
     16.1 Industry Excerpts
     16.2 Discussion Guide
     16.3 Knowledge Store: Marketsandmarkets’ Subscription Portal
     16.4 Introducing RT: Real Time Market Intelligence
     16.5 Available Customizations
     16.6 Related Reports
     16.7 Author Details

List of Tables (36 Tables)

Table 1 North America IT Services Market Size Growth Rate, 2014–2021 (USD Billion, Y-O-Y %)
Table 2 Recent Developments in Smac Technologies, 2014–2021
Table 3 North America: IT Services Market Size, By Service Type, 2014–2021 (USD Billion)
Table 4 U.S.: IT Services Market Size, By Service Type, 2014–2021 (USD Billion)
Table 5 Canada: IT Services Market Size, By Service Type, 2014–2021 (USD Billion)
Table 6 Professional Services: North America IT Services Market Size, By Type, 2014–2021 (USD Billion)
Table 7 U.S.: Professional Services Market Size, By Type, 2014–2021 (USD Billion)
Table 8 Canada: Professional Services Market Size, By Type, 2014–2021 (USD Billion)
Table 9 System Integration Market Size, By Type, 2014–2021 (USD Billion)
Table 10 U.S.: System Integration Market Size, By Type, 2014–2021 (USD Billion)
Table 11 Canada: System Integration Market Size, By Type, 2014–2021 (USD Billion)
Table 12 Application Integration Market Size, By Type, 2014–2021 (USD Billion)
Table 13 U.S.: Application Integration Market Size, By Type, 2014–2021 (USD Billion)
Table 14 Canada: Application Integration Market Size, By Type, 2014–2021 (USD Billion)
Table 15 Infrastructure Integration: North America IT Services Market Size, By Type, 2014–2021 (USD Billion)
Table 16 U.S.: Infrastructure Integration Market Size, By Type, 2014–2021 (USD Billion)
Table 17 Canada: Infrastructure Integration Market Size, By Type, 2014–2021 (USD Billion)
Table 18 Managed Services: North America IT Services Market Size, By Type, 2014–2021 (USD Billion)
Table 19 U.S.: Managed Services Market Size, By Type, 2014–2021 (USD Billion)
Table 20 Canada: Managed Services Market Size, By Type, 2014–2021 (USD Billion)
Table 21 North America: IT Services Market Size, By Organization Size, 2014–2021 (USD Billion)
Table 22 U.S.: Market, By Organization Size, 2014–2021 (USD Million)
Table 23 Canada: Market, By Organization Size, 2014–2021 (USD Million)
Table 24 North America: IT Services Market Size, By Deployment Type, 2014–2021 (USD Billion)
Table 25 U.S.: IT Services Market Size, By Deployment Type, 2014–2021 (USD Billion)
Table 26 Canada: IT Services Market Size, By Deployment Type, 2014–2021 (USD Billion)
Table 27 North America: IT Services Market Size, By Business Function, 2014–2021 (USD Billion)
Table 28 U.S.: Market Size, By Business Function, 2014–2021 (USD Billion)
Table 29 Canada: Market Size, By Business Function, 2014–2021 (USD Billion)
Table 30 North America: IT Services Market Size, By Vertical, 2014–2021 (USD Billion)
Table 31 U.S.: Market Size, By Vertical, 2014–2021 (USD Billion)
Table 32 Canada: North America IT Services Market Size, By Vertical, 2014–2021 (USD Billion)
Table 33 New Product Launches, 2015–2016
Table 34 Partnerships, Agreements, and Collaborations, 2014–2016
Table 35 Mergers and Acquisitions, 2015–2016
Table 36 Expansions, 2016

List of Figures (62 Figures)

Figure 1 North America IT Services Market: Research Design
Figure 2 Breakdown of Primary Interviews: By Company Type, Designation, and Region
Figure 3 Market Size Estimation Methodology: Bottom-Up Approach
Figure 4 Market Size Estimation Methodology: Top-Down Approach
Figure 5 Data Triangulation Methodology
Figure 6 Top Three Categories for the North America IT Services Market During the Period 2016–2021
Figure 7 Growing Adoption of Cloud Services is Driving the Market During the Forecast Period
Figure 8 Managed Services Segment is Expected to Witness the Highest Growth Rate During the Forecast Period
Figure 9 Cloud Deployment Type is Expected to Grow at the Highest CAGR in the North America IT Services Market During the Forecast Period
Figure 10 Government and Defense Vertical is Expected to Hold the Largest Market Share in 2016
Figure 11 Evolution of the North America IT Services Market
Figure 12 Market Segmentation: By Service Type
Figure 13 Market Segmentation: By Business Function
Figure 14 Market Segmentation: By Organization Size
Figure 15 Market Segmentation: By Deployment Type
Figure 16 Market Segmentation: By Vertical
Figure 17 Market: Drivers, Restraints, Opportunities, and Challenges
Figure 18 Market: Value Chain Analysis
Figure 19 Companies Adopted Different Strategies to Gain Competitive Advantage in the North America IT Services Market
Figure 20 Managed Services Type is Expected to Grow at the Highest CAGR During the Forecast Period
Figure 21 Consulting is Expected to Grow Substantially Among All Professional Services During the Forecast Period
Figure 22 Application Integration Segment is Expected to Grow at the Highest CAGR During the Forecast Period
Figure 23 Application Testing is Expected to Grow at the Highest CAGR During the Forecast Period
Figure 24 Mobility Segment is Expected to Grow at the Highest CAGR Among Infrastructure Management Services During the Forecast Period
Figure 25 Managed Mobility is Expected to Grow at the Highest CAGR During the Forecast Period
Figure 26 Small and Medium Businesses Segment is Expected to Grow at the Highest CAGR During the Forecast Period
Figure 27 Cloud is Expected to Be the Major Deployment Model During the Forecast Period
Figure 28 Sales and Marketing Business Function is Expected to Grow at the Highest CAGR During the Forecast Period
Figure 29 Healthcare Vertical is Expected to Grow at the Highest CAGR During the Forecast Period
Figure 30 Companies Adopted the Strategy of Partnerships, Agreements, and Collaborations as the Key Growth Strategy From 2014 to 2016
Figure 31 Product Offering Analysis
Figure 32 Business Strategy Analysis
Figure 33 Market Evaluation Framework
Figure 34 Battle for Market Share: New Product Launches and Partnerships Were the Key Strategies
Figure 35 Geographic Revenue Mix of the Top Five Market Players
Figure 36 Hewlett Packard Enterprise: Company Snapshot
Figure 37 Hewlett Packard Enterprise: SWOT Analysis
Figure 38 Accenture PLC: Company Snapshot
Figure 39 Accenture PLC: SWOT Analysis
Figure 40 Cognizant Technology Solutions Corporation: Company Snapshot
Figure 41 Cognizant Technology Solutions Corporation: SWOT Analysis
Figure 42 Wipro Limited: Company Snapshot
Figure 43 Wipro Limited: SWOT Analysis
Figure 44 HCL Technologies Limited: Company Snapshot
Figure 45 HCL Technologies Limited: SWOT Analysis
Figure 46 Infosys: Company Snapshot
Figure 47 Infosys: SWOT Analysis
Figure 48 IBM Corporation: Company Snapshot
Figure 49 IBM Corporation: SWOT Analysis
Figure 50 Oracle Corporation: Company Snapshot
Figure 51 Oracle Corporation: SWOT Analysis
Figure 52 Tata Consultancy Services: Company Snapshot
Figure 53 Tata Consultancy Services: SWOT Analysis
Figure 54 Tech Mahindra: Company Snapshot
Figure 55 Tech Mahindra: SWOT Analysis
Figure 56 Fujitsu: Company Snapshot
Figure 57 Fujitsu: SWOT Analysis
Figure 58 Capgemini: Company Snapshot
Figure 59 Capgemini: SWOT Analysis
Figure 60 Ericsson: Company Snapshot
Figure 61 Huawei Technologies Co. Ltd.: Company Snapshot
Figure 62 Unisys Corporation: Company Snapshot

The North America IT services market is expected to grow from USD 175.2 Billion in 2016 to USD 261.5 Billion by 2021, at a Compound Annual Growth Rate (CAGR) of 8.3% during the forecast period. Several factors such as rising investments in the IT infrastructure, demands for efficient management of IT services, and increasing adoption of IT services in Small and Medium-sized Enterprises (SMEs) have bolstered the growth of IT services systems. Verticals such as government & defense; consumer goods & retail; healthcare; Banking, Financial Services, and Insurance (BFSI); and communication & technology have been the major contributors to the market.

The North America IT services market is segmented by type, deployment type, organization size, business function, and vertical. The managed IT services is likely to observe high demand during the forecast period, considering the enterprises’ preference to outsource the entire IT services in order to optimize and streamline their workflow.

The cloud deployment type is expected to grow at the fastest CAGR during the forecast period. This can be attributed to the increasing digital data and concerns over storage, thus aiding the fast adoption of cloud services. The cloud services segment has further benefited enterprises and Small and Medium-sized Businesses (SMBs) to eliminate the cost of on-premises infrastructure by providing on-demand virtual IT resources and services.

The IT services segment has been predominantly adopted by large enterprises to devise their IT strategy or manage their entire IT infrastructure. Due to the complexities and continuous upgradation to latest IT solutions, large enterprises are more inclined to adopt IT services. SMBs held a lower share in the North America IT services market. However, SMBs are expected to witness fast growth during the forecast period. This can primarily be attributed to the cloud services segment that has reduced the infrastructure costs associated with on-premises deployment.

The IT services segment is being increasingly adopted by different verticals, such as government & defense, healthcare, consumer goods & retail, BFSI, and communication & technology, which has led to the growth of the market across the globe. The healthcare sector is expected to grow at the highest CAGR in the North America IT services market among the different industry verticals, owing to its adoption of analytics tools and cloud services during the forecast period.

North America has been at the forefront of the IT services adoption due to the high concentration of enterprises in the region coupled with the high Information and Communications Technology (ICT) spending by enterprises. Enterprises in this region view IT services as a source of competitive advantage where the enterprises spend heavily in these services to stay ahead of the competition, as these services enable enterprises in a quicker decision-making process.

However, concern over the privacy and security to deploy company’s vital data over cloud services has been a major factor to hinder the cloud services sector. The top players, which include IBM Corporation, HP Enterprise, Accenture PLC, Wipro, Tata Consultancy Services, Cognizant Technology Solutions Corp., Nokia Networks, and Ericsson have been emphasizing on developing differentiating and innovating IT services. These players have adopted various growth strategies, such as new product launches; partnerships, contracts, collaborations, and acquisitions; and expansions to expand their product/service offerings and market share in the IT services space.

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