Gartner Research

Market Opportunity Map: IT Services, Worldwide

Published: 28 January 2016

ID: G00294217

Analyst(s): Sandra Notardonato , Dean Blackmore , Bryan Britz

Summary

This research should be viewed by service line practice leaders as a guide of profitability within their respective industry segment and by C-level executives as a directional guide to the changing market dynamics hitting the IT services industry.

Table Of Contents

Market Opportunity Map

Market Opportunities Overview

  • Definition and Scope
  • Description of Markets

Analysis

  • Technology Trends
    • Automation Will Continue to Provide Margin Growth Opportunities for Providers
    • Cloud-Based Services Cannibalization to Intensify
    • Through 2019, 48% of the IT Services Market Growth Will Be Directly Attributable to Digital Technologies
  • Buyer Trends
    • Buyers Will Demand Lower Prices for Services Related to Mode 1 Operations
    • Technology Budgets Will Continue to Shift to Business
    • Incumbent Advantage Will Continue to Wane
  • Sellers' Strategic Options
    • Consolidate or Exit Fragmented Share in Lower-Growth, Lower-Margin Markets
    • Accelerate Productization to Reap Greater Profits
    • Change the Mix of Revenue to Higher-Margin Models
    • Differentiate the Customer Experience to Reduce Field Selling Expenses
    • Specialize in Domain or Vertical-Industry Solutions
    • Drive World-Class Operational Excellence and Execution

Vendors to Watch

Gartner Recommended Reading

©2020 Gartner, Inc. and/or its affiliates. All rights reserved. Gartner is a registered trademark of Gartner, Inc. and its affiliates. This publication may not be reproduced or distributed in any form without Gartner’s prior written permission. It consists of the opinions of Gartner’s research organization, which should not be construed as statements of fact. While the information contained in this publication has been obtained from sources believed to be reliable, Gartner disclaims all warranties as to the accuracy, completeness or adequacy of such information. Although Gartner research may address legal and financial issues, Gartner does not provide legal or investment advice and its research should not be construed or used as such. Your access and use of this publication are governed by Gartner’s Usage Policy. Gartner prides itself on its reputation for independence and objectivity. Its research is produced independently by its research organization without input or influence from any third party. For further information, see Guiding Principles on Independence and Objectivity.

Already have a Gartner Account?

Purchase this Document

To purchase this document, you will need to register or sign in above

Become a client

Learn how to access this content as a Gartner client.