Overview

All systems go: Rising corporate profit will lead to increased use of industry services

IBISWorld’s IT Consulting Industry Research Report contains up-to-date data and analysis, allowing you to identify the strengths and potential weaknesses of major companies in the industry. Build your credibility with clients and prospects by sharing insights into the current and emerging trends driving their industry. Our market research gives you the tools to win new business and keep existing clients.

REPORT SNAPSHOT

Market Share of Companies
There are no companies with a dominant market share in this industry
Industry Statistics & Market Size
Revenue
$408bn
Annual Growth
12-17
2.1%
Annual Growth
17-22
Profit
Employment
2,097,704
Business
464,103

Industry Threats & Opportunities

  • Shifting technology trends boosted demand for new services and encouraged companies to replace older, more traditional technology
  • The trend toward cloud computing has benefited industry operators
  • Both corporate profit and the total number of US businesses are forecast to increase
  • Industry Analysis & Industry Trends

    The IT Consulting industry is composed of companies that help businesses design and implement information technology (IT) systems and infrastructure. Due to the low capital requirements of the industry, a modest number of operators are small nonemployers or independent contractors. Over the five years to 2017, shifting technological trends toward cloud computing and data analytics have caused larger operators to acquire smaller companies and develop new products to stay relevant. Shifting technology trends boosted demand for new services and encouraged companies to replace older, more traditional technology. Additionally, strong corporate profit for most of the five-year period and constantly rising investment in computers and software has helped drive industry revenue growth.

    Industry Report - Starting a New Business Chapter

    The IT Consulting industry experiences a low level of regulation and minimal startup costs, which encourages new companies to continually enter the market. Since the industry is so labor intensive, establishing a firm requires only that the business owner possess knowledge and experience in the field and a functioning IT system. For industry entrants hoping to establish a sole proprietorship, the primary barriers to entry are educational experience in a relevant computer science discipline and the ability to attract clients. Although developing a network of clients who can provide a regular flow of work can be a significant challenge, this is a challenge many in the industry have taken on, with the majority of establishments classified as small, nonemployer firms. How

    Additional Insights for the IT Consulting Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the IT Consulting Industry are

  • Adoption of a commercial focus
  • Access to the latest available and most efficient technology and techniques
  • Access to highly skilled workforce
  • IBISWorld analysts also discuss how external factors such as Private investment in computers and software and Corporate profit in the IT Consulting industry impact industry performance..

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    Industry Products

    What is the IT Consulting Industry?

    The IT Consulting industry includes firms that provide the following services to client companies: writing, testing and supporting custom software; planning and designing integrated hardware, software and communication infrastructure; and on-site management of computer systems and data processing facilities. This industry excludes packaged software publishers and off-site data processing and hosting services.

    Industry Products
    Computer systems development
    Custom services
    Technical support
    IT infrastructure
    Technical consulting
    Other services
    Industry Activities
    Providing information technology expertise for consumers
    Writing, modifying, testing and supporting software to meet the specific needs of one client
    Planning, design and integration of computer or network systems
    On-site management and IT functions

    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
  • Private investment in computers and software
  • Corporate profit
  • Government consumption and investment
  • Number of mobile internet connections
  • Consumer price index

  • Current Performance
  • Continued innovation
  • Industry structure
  • Chart: Revenue Growth

  • Industry Outlook
  • Business confidence and investment
  • Innovation and shifting technological trends
  • Industry structure
  • Table: IT Consulting Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - IT Consulting Industry Lifecycle vs The Economy

  • Products & Markets
    Supply Chains
    Key Buying Industries
  • Wholesale Trade
  • Information
  • Finance and Insurance
  • Healthcare and Social Assistance
  • Public Administration

  • Key Selling Industries
  • Communication Equipment Manufacturing
  • Computer Manufacturing
  • Computer Peripheral Manufacturing
  • Information
  • Software Publishing

  • Products & Services
  • Custom services
  • Other services
  • IT infrastructure
  • Computer systems development
  • Technical support
  • Technical consulting
  • Chart: IT Consulting Industry Products and Services Segmentation

  • Demand Determinants
  • Business profit and confidence
  • New IT products
  • In-house IT support versus outside consultants

  • Major Markets
  • Other sectors
  • Financial services
  • Public sector and nonprofits
  • Manufacturing and retail
  • Communications and other
  • Healthcare sector
  • Chart: Major Market Segmentation for the IT Consulting Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Competitive Landscape
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
    ProfitWagesPurchasesOther costs
  • Chart: Cost Structure Benchmarking – Sector vs IT Consulting

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the IT Consulting Industry

  • Industry Globalization
    Major Companies
    There are no major players in this industry
    Operating Conditions
    Capital Intensity
  • Chart: Level of Capital Intensity for the IT Consulting 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 IT Consulting Industry
    Includes:
  • Industry Revenue (2008-2022)
  • Industry Gross Product (2008-2022)
  • Establishments (2008-2022)
  • Businesses (2008-2022)
  • Employment (2008-2022)
  • Wages (2008-2022)
  • Corporate Profit (2008-2022)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Table: Industry Financial Ratios
    Jargon & Glossary
    Big Data Analytics
  • The method by which a company combs through a large collection of unorganized data for potential trends and insights.
  • Cloud Computing
  • Computing model in which companies' computer applications are hosted in outside servers accessible via the internet and managed by third-party firms.
  • Commoditization
  • The trend toward uniformity in product offerings and price; commonly cited as a cause of declining prices and profitability in computer hardware manufacturing.
  • Information Technology (It)
  • The design, development, implementation, support or management of computer-based information systems.
  • Integrated System
  • A preintegrated, optimized combination of software and hardware. Such a system increases ease in installing updates and improves performance, scalability and reliability.
  • Outsource
  • To procure goods or services under contract with an outside supplier.
  • Server
  • Any combination of hardware or software designed to provide services to clients; it generally refers to a center of a network, where information can be shared via an online connection.
  • 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.
  • Third Platform
  • A collection of all modern IT technologies introduced in the past decade; includes cloud computing, social networking, mobile computing and 'big data' analytics.
  • Virtualization
  • The use of software programs to operate multiple virtual server systems on one physical server.
  • 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 IT Consulting:
    • 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 IT Consulting 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 IT Consulting, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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