Overview

Silver lining: Rising IT outsourcing and prevalence of online services will charge industry growth

IBISWorld’s Data Processing & Hosting Services market research report can be used to help you: understand market size and growth potential; major companies; draft business plans and pitch books; and conduct benchmarking and SWOT analysis. Our industry analysis highlights macro industry trends in the overall sector and micro trends faced by companies that do business in the industry. The industry report also provides key industry statistics and 5-year forecasts to anticipate future industry prospects so you can decide with confidence.

REPORT SNAPSHOT

Industry Threats & Opportunities

  • Many companies have cut internal IT management, outsourcing work to reduce costs
  • Due to lower overseas labor costs, international companies are able to offer services at a lower price
  • Consolidation is expected to be the dominant trend among the industry’s larger companies

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    Industry Analysis & Industry Trends

    The Data Processing and Hosting Services industry provides infrastructure used for a variety of information technology (IT)-related activities, ranging from web hosting to automated data entry services. Over the five years to 2016, businesses have increasingly outsourced their IT infrastructure needs, directly benefiting industry operators. The advent and popularization of cloud computing, one of the industry's fastest-growing product offerings, has similarly led to greater demand. Over the next five years, industry revenue is expected to grow. As the technology required to process and host data becomes more complex, the level of expertise needed to effectively manage large data centers will rise...

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    Industry Report - Industry Key Buyers Chapter

    The level of concentration in the Data Processing and Hosting Services industry is low, primarily due to the range of services that data processing and hosting service companies can provide. In 2016, IBISWorld estimates that the four-largest operators in the Data Processing and Hosting Services industry will account for about 26.8% of industry revenue. In terms of the size of establishments according to staff levels, the industry is highly fragmented, with 50.7% of all establishments employing fewer than five people in 2016. Large establishments of 100 or more employees represent just 4.7% of total establishments. These numbers may be skewed due to outsourcing; some companies may have more employees overseas that are not included in the data for this industry.

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    Additional Insights for the Data Processing & Hosting Services Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Data Processing & Hosting Services Industry are

  • Effective quality control
  • Having a cost-effective distribution system
  • Ability to quickly adopt new technology
  • IBISWorld analysts also discuss how external factors such as Number of mobile internet connections and Percentage of services conducted online in the Data Processing & Hosting Services industry impact industry performance..

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    Industry Products

    What is the Data Processing & Hosting Services Industry?

    This industry provides data processing or hosting activities. Data processing services provide specialized reports from information supplied by clients. Hosting services can include web and application hosting. Services range from automated data entry to processing data.

    Industry Products
    Business process management and data processing
    IT computer network and network management services
    Data storage and management services
    IT technical support services
    Application service provisioning
    Other services
    Website hosting services
    Industry Activities
    Application hosting
    Application service provider services
    Data entry services
    Data processing computer services
    Data processing
    Database management
    Web hosting

    Table of Contents

    About this Industry
    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry at a Glance
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Industry Performance
    Executive Summary
    Key External Drivers
  • Number of mobile internet connections
  • Percentage of services conducted online
  • Demand from internet publishing and broadcasting
  • Corporate profit
  • External competition for the Data Processing and Hosting Services industry
  • Price of computers and peripheral equipment
  • Private investment in computers and software

  • Current Performance
  • The cloud spurs growth
  • Outsourcing by large companies
  • Offshoring threat
  • Industry landscape
  • Chart: Revenue Growth

  • Industry Outlook
  • Outsourcing drives growth
  • Shift to online services
  • Growth and consolidation
  • Table: Data Processing & Hosting Services Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Data Processing & Hosting Services Industry Lifecycle vs The Economy

  • Products & Markets
    Supply Chains
    Key Buying Industries
  • Finance and Insurance
  • Public Administration
  • Internet Publishing and Broadcasting

  • Key Selling Industries
  • Computer Manufacturing
  • Computer Peripheral Manufacturing
  • IT Consulting
  • Software Publishing
  • Wired Telecommunications Carriers

  • Products & Services
  • Application service provisioning
  • Other services
  • Business process management and data processing
  • Data storage and management services
  • Website hosting services
  • IT technical support services
  • IT computer network and network management services
  • Chart: Data Processing & Hosting Services Industry Products and Services Segmentation

  • Demand Determinants
  • Business sentiment
  • Cost of technology
  • Price of existing services

  • Major Markets
  • Non-financial enterprises
  • Resellers
  • Financial firms
  • Content providers
  • Government organizations
  • Chart: Major Market Segmentation for the Data Processing & Hosting Services Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Competitive Landscape
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profit
  • Wages
  • Purchases
  • Depreciation
  • Rent and utilities, marketing and other
  • Chart: Cost Structure Benchmarking – Sector vs Data Processing & Hosting Services

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Data Processing & Hosting Services Industry

  • Industry Globalization
    Major Companies
    International Business Machines Corp.Hewlett Packard Enterprise Company
  • Table: International Business Machines Corp. - financial performance
  • Table: Hewlett Packard Enterprise Company - financial performance

  • Operating Conditions
    Capital Intensity
  • Chart: Level of Capital Intensity for the Data Processing & Hosting Services Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Key Statistics
    Table: Industry Data for the Data Processing & Hosting Services Industry
    Includes:
  • Industry Revenue (2007-2021)
  • Industry Gross Product (2007-2021)
  • Establishments (2007-2021)
  • Businesses (2007-2021)
  • Employment (2007-2021)
  • Wages (2007-2021)
  • Percentage of services conducted online (2007-2021)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Table: Industry Financial Ratios
    Jargon & Glossary
    Application Service Provider (Asp)
  • A business that provides computer-based services to customers over a network.
  • Cloud Computing
  • Computing model in which companies' computer applications are hosted in outside servers accessible via the internet and managed by third-party operators.
  • Data Warehousing
  • The collection of data and the establishment of a common format for different data sets to allow them to work together and be stored in one place.
  • Information Technology (It)
  • The acquisition, processing, storage and dissemination of vocal, pictorial, textual and numerical information by microelectronics-based computing and telecommunications.
  • Outsourcing
  • To procure goods or services under contract with an outside supplier.
  • Software As A Service (Saas)
  • Software that is deployed over the internet and runs behind a firewall in a person's local area network or personal computer.
  • Why buy this report?

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Data Processing & Hosting Services:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Data Processing & Hosting Services market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Data Processing & Hosting Services, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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