Global IT Consulting Industry Analysis
The consulting and related IT services industry witnessed 5% growth in 2011, reaching almost $542 billion. The market maintained yearly growth in excess of 3% between 2007 and 2011, reports MarketLine. Integration and development services represented the leading segment in 2011, generating almost $263 billion and accounting for close to half of overall market value.
IT consulting industry performance is expected to accelerate to a yearly rate of almost 4% between 2011 and 2016, bringing the market to almost $653 billion.
An ever-increasing number of companies avail of consultant services for strategic planning projects to boost competitiveness. IT consulting outfits provide management solutions for technical projects as well as can help with testing and writing custom software, managing computer systems, and designing integrated software, hardware and communications infrastructure.
Certain software companies have ventured into the consulting realm to meet the growing demand for implementation, design and management of IT-based business information processes.
Technological innovation, such as cloud computing, provides new opportunities for the global IT consulting industry. Companies eager to benefit from the cost effectiveness of cloud services are investing more and more in this sector. Adoption of virtualization across developing and established markets has also accelerated, reports Global Industry Analysts.
Virtualization consulting involves pre-sales consulting and integration, and is forecast to record rising demand. Companies without the time or expertise to make the necessary transition to these new technologies can hire the services of consulting companies to remain competitive.
Regional Market Share
Major spending on IT services is expected to come from Australia, China and India, predicts Global Industry Analysts. India’s consulting sector’s initial focus was on cost arbitrage, and Western nations opted to take advantage of Indian IT services as a low-cost consulting services alternative. The country’s IT consultants are now consulted for their expertise, innovation and scalability.
India’s IT consulting market holds strong potential, offering a range of services, including data center managements, capacity planning and other consulting services. China represents the main competitor for India’s IT consulting sector. With the emergence of several leading IT consulting companies in China, the country has become a serious contender, offering services of a similar quality to India’s providers.
Demand for IT consulting services remained unperturbed during the economic recession as companies continue to benefit from these services in a bid to survive the more difficult economic environment.
While IT consulting demand continued, its driving force changed due to the recession, with other factors playing a greater role in demand such as off shoring, globalization, rising natural demand, the marked advantages of the offshore labor market, and a lack of expertise in established markets, reports Global Industry Analysts.
The global business and IT consulting service sector is expected to record yearly growth in excess of 6% between 2011 and 2014, according to research from TechNavio. Industry performance is currently driven in large part by widespread adoption of green IT consulting. Social networking has also contributed to growth in the global business and IT consulting service market.