Market Trends of IT Services Industry
Cloud Services is Gaining Traction Due to the Emergence of Cloud-based Platform
- Companies in this digital age are striving for agility through the adoption of new technologies, primarily by transitioning to cloud-based environments. Operating in the cloud involves establishing embedded connections and intelligence. This fosters the seamless integration of smart operations and lays a robust foundation for cloud-linked digital services. According to Flexera Software, in 2024, 49 percent of respondents are already running significant workloads on Amazon Web Services (AWS).
- Cloud-based infrastructure provides flexible, on-demand access to the resources underlying these new digital business solutions. Due to advancements in IT operation across the cloud-based platform, IT services have become more data-driven and real-time, creating greater value for the business, especially in operational efficiency, business opportunity discovery, and remote access optimization.
- There has been a significant breakthrough in cloud computing over the past few years, as cloud solutions offer various significant advantages. As the demand for cloud services is expected to grow over the next few years, with immense demand from the IT and telecommunication industry across the ever-growing corporate sector, the scope for IT infrastructure services from these end users is expected to grow rapidly.
- In April 2024, Cloud Software Group, Inc., and Microsoft Corp. declared that they are strengthening their collaboration plans through an extensive eight-year strategic partnership. This collaboration aims to bolster the market presence of Citrix's virtual application and desktop platform. Furthermore, it will pave the way for the joint creation of innovative cloud and AI solutions underpinned by a unified product roadmap.
- To increase productivity, governance, and control, many organizations aim to deploy their systems' core to the cloud. Various market vendors are driving their investments to accelerate digital transformation. For instance, in May 2024, Telefónica and Google Cloud broadened their collaboration, aiming to deliver top-tier cloud solutions to the market. Their shared goal is to empower businesses to expedite their digital evolution. This renewed partnership entails the expansion of Google Cloud services, available through Telefónica Tech, specifically tailored for the B2B sector. The collaboration also emphasizes a joint focus on advanced innovations, notably in artificial intelligence (AI) and generative AI (Gen AI).
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North America is Expected to Register Significant Market Growth During the Forecast Period
- Rapid technological advancements, a surge in cloud computing adoption, and a rising demand for cybersecurity solutions propel North America's IT services market. Businesses are ramping up digital transformation efforts to boost their efficiency and competitive edge. The market is further bolstered by the widespread adoption of IoT devices and the surge in big data analytics. Moreover, the shift to remote work, hastened by the COVID-19 pandemic, has emphasized the overall significance of resilient IT infrastructure and managed services. The ascent of AI and machine learning technologies further enriches the market's landscape.
- The banking and financial institutions in the United States are accelerating spending on information technology services, which is helped by higher growth in the banking sector and improving economic fundamentals. Many enterprises in the region have begun adhering to newer methods and processes to gain a competitive advantage, resulting in the increasing adoption of emerging technologies, like AI, IoT, machine learning (ML), Blockchain, robotics, and data science. The region is witnessing a surge in IoT applications and sales, propelled by the increasing digitalization and adoption of connected devices in business and industry. This shift is paving the way for the expansion of IT services in the region.
- The market witnessed intense competition, fuelled by both established and emerging players. These industry participants deploy a mix of organic and inorganic strategies to enhance their competitive edge, consequently amplifying market growth prospects. For instance, in October 2023, Pax8, a cloud commerce marketplace, teamed up with CyberFOX to offer managed service providers (MSPs) specialized identity access management (IAM) solutions, with a focus on privileged access management (PAM) via their exclusive product, AutoElevate. CyberFOX, with a track record of assisting more than 2000 MSPs, is dedicated to enhancing efficiencies, boosting productivity, and creating new revenue avenues for its clientele, primarily comprising small and medium-sized businesses (SMBs).
- Also, in March 2024, Cognizant renewed its enduring partnership with Pon IT, a subsidiary of the Dutch conglomerate Pon Holdings. This extension solidifies Cognizant's role as the provider of cloud-managed services for Pon IT's diverse operating entities. As the collaboration progresses, Cognizant is set to introduce additional enhancements, paving the way for Pon IT to leverage a more agile, intuitive, and integrated cloud infrastructure.
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