Worldwide spending on IT services and business services will total about $936 billion in 2016 and are expected to reach $1.1 trillion by 2020, according to research firm International Data Corp. (IDC).
The firm’s Worldwide Semiannual Services Tracker reports the IT services market at $639 billion for this year, rising to $731 billion by 2020.
On a geographic basis, the United States is projected to generate the largest percentage of services spending throughout the forecast period, followed by Western Europe. The fastest growing regions will be Latin America and the Middle East and Africa (MEA).
With more than $100 million worth of spending this year, the largest services markets will be key horizontal business process outsourcing (BPO) and systems integration services, which will also generate the largest revenue pools over the 2016-2020 forecast period, IDC said. Cloud-related services spending is expected to reach more than $98 billion by the end of 2016.
"An increased demand for digital solutions around 3rd Platform technologies will see cloud-related services spending nearly double by 2020, with continued considerable growth expected into the near future," said Lisa Nagamine, research manager with IDC's Worldwide Semiannual Services Tracker.
"Project-oriented and outsourcing services produce the majority of spending in cloud-related IT services, driven by a high demand for cloud platform adoption," Nagamine said. "As digital transformation involves significant changes to people and business processes as well as technology, most buyers will engage an outside services firm to help them along their transformation journey.”
