The global IT services market experienced strong growth over the last five years, reaching $1,150 billion in 2017. North America dominates the market with 42% share. The APAC region is expected to see the highest growth. Consulting services saw the highest growth in 2011 at 11%. Key trends driving growth include cloud computing, mobility, big data and analytics, and BYOD. IBM's strategies focus on integrated solutions, emerging markets, research and acquisitions in areas like big data and analytics, and social business solutions.
2. Market Size
Major Trends
Key Competitors
IBM – Key Strategies
3. The global IT services market experienced strong growth during the last five Worldwide IT Services Market by Service Line, 2011
years and is expected to reach US $1,150 billion mark in 2017 (Millions of Dollars)
Total end-user spending on IT services increased 7.7% to $845 billion in 2011,
up from $784 billion in 2010
North America, with 42% of the global market share, dominates the highly
fragmented global IT services industry
The APAC region is expected to register the highest growth rate among all
regions within the IT services market through 2017 to become the industry
leader.
In a highly fragmented global market, the top 20 companies gained
moderately over smaller competitors in 2011, accounting for 38.4% of the total
market share
Consulting services reported the highest growth rate in 2011 at 11.0%
amongst the service segments.
The first Indian company entered the list of top 20 at 16th rank. TCS joined the
list based on 2011 IT services revenue, with $9.0 billion, an increase of 29.4%
over its 2010 IT services revenue.
Source: Gartner
Note: IT services as defined by Gartner includes consulting, Implementation(development and integration),
ITO, BPO, software support, Hardware support
4. Growth in cloud services (IaaS and BPaaS) will be witnessed in
Big Data
and the coming years
Analytics
Consulting reported the highest growth rate in 2011 at 11.0%.
Consumeriza
Mobility Demand for consulting services is expected to remain high due
tion of IT
to the complexity of environments
Cloud computing, mobility and social technologies will become
more capable
Global
Trends
Gartner Analysts expect, worldwide enterprise spending on
Social
BYOD
Media public cloud services to grow from $91 billion in 2011 to $207
billion by 2016
Big data and analytics will be of significance in the coming
Cloud
years
Security
Computing
BYOD (Bring Your Own Device)
Business process as a service (BPaaS) accounts for majority of
cloud spending by enterprises
Source: Gartner, CIO Magazine, Microsoft
Platform as a service (PaaS), software as a service (SaaS) and
infrastructure as a service (IaaS) are growing at a faster pace
6. To grow revenue, expand markets and increase earnings per share
◦ IBM’s current strategy is a move from selling independent IT products and services to selling interdependent and integrated
business solutions across its business segments
◦ IBM actively pursued a mixed portfolio of deal sizes, but continues to focus on outsourcing deals of greater value than $100
million in total contract value
◦ IBM targeted growth from emerging markets in 2011. (with Russia being the standout performer on a revenue growth of
about 45%)
Sustained Investments in Research and Acquisitions
◦ IBM believes that big data has the potential to significantly change how organizations use data and run analytics
◦ Business analytics and big data are strategic bets for IBM, which recognizes the huge potential to demonstrate leadership in
this space
Integration Solutions
IBM is moving towards more integrated solution development and delivery by using integrated capabilities across its business
segments.
Social Business Strategy (SBS)
IBM announced SBS at Lotusphere 2011 and reinforced it in 2012. SBS represents the company's new focus on business-oriented
solutions sold to executives as high up as the CEO and as part of IBM's overarching Smarter Planet campaign.
Source: Gartner, Company website, press releases
7. o Gartner
o IDC
o CIOonline Magazine
o Company websites
o IT Publications
