US IT Services Market Report 2017

Growing Demand of Hybrid Cloud was the latest trend observed in the information services market as of 2016. With growth and technological advances in the cloud industry, companies are witnessing a growing demand of hybrid cloud model. In 2016, hybrid cloud adoption rose from 58% to 71% year-over-year. Hybrid cloud services meet organization’s regulatory norms while also benefiting from the economies of the cloud. They also support organizations in adopting cloud technology without making changes to the existing infrastructure. Since hybrid clouds limit the costs of users, demand has been growing among midsize enterprises.

USA IT services market is the largest in the world. It currently accounts for approximately one third of the global IT services market. The market value of IT services account for approximately 30% of the USA IT market. The IT services market has witnessed modest growth in recent years primarily driven by advancing cloud computing technologies, major investments and favorable government initiatives and funds.

Federal Government has launched multiple initiatives and proposed high investments which has driven the demand for IT services. Some of the key initiatives and investments include –
‧ In 2015, the US Department of State launched a new initiative called ‘Global Connect’, which seeks to bring 1.5 billion people who lack Internet access, online by 2020.
‧ In 2015, Cybersecurity National Action Plan (CNAP) was initiated to enhance cyber security awareness, protect privacy, maintain public safety as well as economic and national security, and to enhance digital security.

The USA information technology services market is expected to grow from over $300 billion in 2016 to over $350 billion in 2020. Hardware Support Services was the largest segment in the USA’s IT services market with around 51% share of the market. These services physically repair or optimize hardware and offer telephone technical troubleshooting and assistance for setup and perform fee-based hardware warranty upgrades. Software and BPO Services was the second largest segment in the USA’s IT services market with around 38% share of the market. This market provides a combination of one or more IT-intensive business processes given to an external provider that in turn, owns, administrates and manages the selected processes based on defined and measurable performance metrics. Cloud Services was the third largest segment in the USA’s IT services market with around 11% share of the market. Cloud services market provides service that is made available to the users over the internet from a cloud computing provider’s server. Most common cloud services include Software as a Service (SaaS), Platform as a Service (PaaS) and Infrastructure as a Service (IaaS).

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1. Information Technology Services Market Characteristics 10
2. USA’s Information Technology Services Market 11
2.1. USA’s Information Technology Services Market 11
2.1.1. USA’s Information Technology Services Market Overview 11
2.1.2. USA Information Technology Services Historic Market, 2012- 2016 13
2.1.3. USA Information Technology Services Forecast Market, 2016- 2020 14
2.1.4. USA Market Size By Segment 15
Hardware Support Services 15
Software and BPO Services 15
Cloud Services 16
2.1.5. USA Information Technology Services Market, Historic and Forecast, Split By Segment, 2012-2020 17
Cloud Services 17
Software and BPO Services 17
Hardware Support Services 17
2.1.6. USA Per Capita Average Information Technology Services Expenditure Versus Internet Penetration, 2012-2020 18
2.1.7. USA Information Technology Services Market Size Versus Internet Hosts, 2012-2020 19
3. Information Technology Services Market Global Context 20
3.1. Historic Market Growth 20
Drivers of the Market 21
Emerging Markets Growth 21
Technology Development 21
B2B & B2C Mobility 21
High Valuations of Information Technology Companies 21
Restraints on the Market 21
Multinational Operations Difficulties 21
High R&D Expenditure 21
3.2. Forecast Market Growth 22
Drivers of the Market 22
Economic Growth 22
Smart Cities 23
Government Initiatives 23
Internet of Things (IoT) 23
Digital Advertising Revenues Increasing 23
Restraints on the Market 23
Interest Rate Increases 23
Infrastructural Barriers 23
Reduction in Free Trade 24
4. Porters Five Forces Model 25
Bargaining Power of Buyers 25
Bargaining Power of Suppliers 26
Threat of New Entrants 26
Threat of Substitutes 26
Industry Competition 26
5. PESTLE Analysis 27
Political 28
Economic 28
Technological 29
Environmental 29
Social 29
Legal 30
6. Information Technology Services Market Segmentation 31
6.1. Global Segmentation 31
Hardware Support Services 32
Software and BPO Services 32
Cloud Services 32
Global Information Technology Services Market, Historic and Forecast, Split By Segment, 2012-2020 33
Cloud Services 33
Software and BPO Services 33
Hardware Support Services 33
6.2. Hardware Support Services 34
6.2.1. Market Characteristics 34
6.2.2. Market Trends And Strategies 35
Software Products Integration 35
Growing Demand For Cloud Data Recovery 35
Software Installations Automation 35
Single to Multiple Services Shift 35
6.3. Software And BPO Services 37
6.3.1. Market Characteristics 37
6.3.2. Market Trends And Strategies 37
Cloud/Software As A Service (Saas) 37
Virtualization 38
Data Analytics For Gaining Insights 38
Software Artificial Intelligence (AI) and Automation 38
Robotics In Business Process Outsourcing 38
ITIL/ISO Certifications In The IT Industry 38
6.4. Cloud Services 39
6.4.1. Market Characteristics 39
6.4.2. Market Trends And Strategies 40
Growing Demand of Hybrid Cloud 40
Faster Data Processing 40
Cloud As A Service 41
Green Data Centers 41
7. Information Technology Services Market Regional And Country Analysis 42
7.1. Global Information Technology Services Market, 2016, By Region 42
7.2. Global Information Technology Services Market, 2012- 2020, Historic and Forecast, By Region 44
7.3. Information Technology Services Market, 2016, By Country 46
7.4. Information Technology Services Market, 2012- 2020, Historic and Forecast, By Country 48
8. Global Information Technology Services Market Comparison with Macro Economic Factors 50
8.1. Information Technology Services Market Size, Percentage Of GDP, Global 50
8.2. Per Capita Average Information Technology Services Expenditure, Global 51
9. Information Technology Services Market Comparison With Macro Economic Factors Across Countries 52
9.1. Information Technology Services Market Size, Percentage Of GDP, By Country 52
9.2. Per Capita Average Information Technology Services Expenditure, By Country 53
9.3. Per Household Average Information Technology Services Expenditure, By Country 54
10. Information Technology Services Indicators Comparison 56
10.1. Internet Penetration, By Country, 2016 56
10.2. Per Capita Information Technology Services Expenditure Versus Internet Penetration, By Country, 2016 58
10.3. Internet Hosts, By Country, 2016 60
10.4. Information Technology Services Market Size Versus Internet Hosts, By Country, 2016 62
10.5. Number Of Registered Domains, By Country, 2016, Millions 64
10.6 Number Of Registered Businesses, By Country, 2016, Millions 66
11.1. Average Spending on Information Technology Services By Registered Businesses, By Country, 2016 68
12. Information Technology Services Market Competitive Landscape 70
12.1. Company Profiles 71
12.2. IBM 71
12.2.1. Overview 71
12.2.2. Products And Services 71
12.2.3. Strategy 72
12.2.4. Financial Performance 72
12.3. Accenture 73
12.3.1 Overview 73
12.3.2 Products And Services 73
12.3.3 Strategy 74
12.3.4 Financial Performance 75
12.4. HPE 76
12.4.1 Overview 76
12.4.2 Products And Services 76
12.4.3 Strategy 76
12.4.4 Financial Performance 77
12.5. Microsoft 78
12.5.1 Overview 78
12.5.2 Products And Services 78
12.5.3 Strategy 78
12.5.4 Financial Performance 79
12.6. SAP 80
12.6.1 Overview 80
12.6.2 Products And Services 80
12.6.3 Strategy 80
12.6.4 Financial Performance 81
12.7. Fujitsu 82
12.7.1 Overview 82
12.7.2 Products And Services 82
12.7.3 Strategy 82
12.7.4 Financial Performance 82
12.8. Tata Consultancy Services 83
12.8.1 Overview 83
12.8.2 Products And Services 84
12.8.3 Strategy 84
12.8.4 Financial Performance 85
12.9. Oracle 85
12.9.1 Overview 85
12.9.2 Products And Services 86
12.9.3 Strategy 86
12.9.4 Financial Performance 87
12.10. NTT Data 87
12.10.1 Overview 87
12.10.2 Products And Services 88
12.10.3 Strategy 88
12.10.4 Financial Performance 89
13. Information Technology Services Market Customer Information 90
Shared Services Survey Findings 90
Reasons For Opening a new SSC and factors for choosing SSC Location In The Future 90
Functions Performed In SSC’s 90
Cloud Computing Has A Significant Presence In The Banking Industry 90
Challenges To Cloud Technology 90
Most Of The Cloud Outages Faced Were Preventable 90
Moving More Workload To Cloud 91
European Companies Outsource More IT services 91
IT Services Budget Allocation 91
14. Key Mergers And Acquisitions In The Information Technology Services Market 92
15. Market Background: Global Information Technology Market 93
15.1. Information Technology Market Characteristics 93
15.2. Information Technology Market Historic Growth 94
Drivers of the Market 95
Technology Development 95
High Valuations on Technology Companies 95
Large Talent Pool in Low Cost Economies 95
Restraints on the Market 95
Software Piracy 95
Multinational Operations 95
15.3. Information Technology Market Forecast Growth 96
Drivers of the Market 97
Economic Growth 97
Smart Cities 97
Government Initiatives 97
Restraints on the Market 97
Impact of E-waste 97
Reduction in Free Trade 97
16. Appendix 98
16.1.1. NAICS Definitions of Industry Covered in This Report 98
16.1.2. Abbreviations 99
16.1.3. Currencies 99
16.1.4. Research Methodology 99
16.1.5. Research Inquiries 100
16.1.6. The Business Research Company 100
16.1.7. Copyright and Disclaimer 100