Global Business Services Industry
The global business services market refers to the provision of business-related solutions to companies. The industry offers a range of services like human resources, consulting, security, marketing, logistics, facility management, outsourcing and leasing. The industry is characterized by fragmentation, with production spread out across many outfits.
There is no one business services provider with a large enough market share to dominate the industry or have an impact on factors such as pricing. The sector is characterized by fragmentation, with the 50 leading outfits generating less than a quarter of overall revenue.
Business Services Key Market Segments
The world information technology service industry is expected to record yearly market growth of 4% between 2010 and 2014, reports TechNavio. Expansion is fuelled by the entry of small IT consulting outfits into the market. Cloud computing has been playing an increasingly important role as a service delivery model. Leading companies operating in the global information technology and knowledge management service market include Fujitsu, IBM, Accenture and Hewlett-Packard.
The global cloud computing market is forecast to reach almost $83 billion by 2016, reports Visiongain. Market growth is being fuelled by increasing smartphone penetration around the world. Advantages afforded by cloud computing, which appeal to companies of all sizes, include adaptability to market demands, scalability, flexible payment methods, faster time-to-market and cost reduction.
The world IT consulting and other audit services industry reached almost $516 billion in 2010, according to MarketLine. Market growth is expected to slow to a yearly rate of just over 2.5% between 2010 and 2015 to reach just under $588 billion. Integration and development services represent the leading market segment, exceeding $254 billion in 2010, which accounts for almost half the overall market in terms of value. The sector encompasses the provision of IT and systems integration solutions, information management services, and IT consulting.
MarketLine estimates the world advertising market was worth almost $87 billion in 2010. Market growth is expected to reach a yearly rate of 5.5% between 2010 and 2015 to exceed $113 billion. Food, beverage and personal/healthcare represent the leading market segment, accounting for over 25% of the overall market in 2010, generating over $22 billion in revenue.
The world mobile marketing and advertising industry exceeded $3.4 billion in 2010, reports Berg Insight. The market is expected to continue recording yearly growth of almost 37%, to reach close to $23 billion in 2016, which will account for more than 15% of the overall digital advertising sector. In the same year, mobile advertising is forecast to account for close to 4% of overall ad spending for media. In many large companies product promotions are often partly outsources. This trend has created a large sub-industry: the business outsourcing sector.
The world legal services sector (which includes the human resources industry) generated over $585 billion in revenue in 2010, according to MarketLine. Market growth is expected to exceed a yearly rate of 5% between 2010 and 2015 to reach close to $752 billion. The global legal professional base grew at a yearly rate of more than 1.5% for the four-year period ending 2010 to exceed more than 3.28 million professionals.
Business Services Regional Market Share
The US business services market involves around 34,000 outfits, which generate yearly revenue of close to $580 billion, according to research from Hoovers. Leading business services providers include Manpower and Kelly Services, specializing in staffing services, solid waste handling company Waste Management and Republic Services, and facilities service outfits Rollins and ABM Industries.