Dublin, Jan. 21, 2026 (GLOBE NEWSWIRE) -- The "IT Services - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts (2026-2031)" has been added to ResearchAndMarkets.com's offering.
The IT services market is forecasted to reach USD 1.65 trillion in 2026, growing from USD 1.51 trillion in 2025, with 2031 projections reaching USD 2.51 trillion at a CAGR of 8.78% from 2026-2031. This growth is driven by robust digital transformation agendas, increased enterprise AI adoption, and rising cloud-native migrations, particularly in banking and healthcare sectors.
Providers bundling consulting, implementation, and managed services around hybrid-cloud and AI workloads are capturing premium contracts. The industry is experiencing heightened consolidation as scale, vertical depth, and IP differentiation become crucial for securing enterprise renewals.
Global IT Services Market Trends and Insights
The digital transformation acceleration post-COVID-19 led to 87% of enterprises adopting multi-cloud solutions, with 51% investing in cloud-native modernization tracks. These advancements reward providers proficient in container orchestration, micro-services, and DevOps. Such trends shift revenue pools towards advisory and managed cloud operations, which demand deep technical credentials and sector insights. Skills scarcity in Kubernetes, site reliability engineering, and FinOps is further increasing service rates, emphasizing why cloud-first programs boost long-term growth.
Hybrid-Cloud Migration Boom
Cloud-ERP outlays are set to double between 2022 and 2027 as enterprises seek workload portability and regulatory compliance. European firms allocated EUR 489.8 billion to IT services in 2025, mainly for cloud initiatives. Multi-cloud strategies help avoid vendor lock-in but increase governance complexity, driving demand for advisory services. Providers offering certified cloud architects and managed FinOps talent are seizing high-margin contracts.
Service-Price Commoditization Pressure
Automation and offshore scale have compressed margins in traditional outsourcing, shifting client demand to outcome-based billing. The competitive landscape is realigning as smaller rivals undercut pricing, accelerating consolidation among established firms capable of offering premium consulting and security services.
Additional Drivers
Detailed analysis includes escalating cyber-threat landscapes, an enterprise AI and analytics spending surge, global talent shortages, and attrition.
Segment Analysis
Managed Security Services exhibit a 12.18% CAGR, the highest across IT services, prompting long-term outsourcing contracts. IT Outsourcing retains the largest revenue share at 28.04%, but margin compression in commoditized workstreams pressures vendors to combine outsourcing with consulting services. Cloud and Platform Services are propelled by hybrid-cloud adoption, facilitating ERP modernization and data integration layers. Business Process Outsourcing demand is also increasing, particularly in finance, HR, and industry-specific back-office workflows.
Small and Medium Enterprises (SMEs) register a 10.92% CAGR through 2031 due to democratized cloud-access to ERP, CRM, and cybersecurity products. SMEs' adoption compresses deployment timelines, encouraging partnerships with managed-service providers. Large Enterprises still dominate with 69.42% of revenue, driven by extensive legacy systems requiring transformative roadmaps. Sustainability credentials and carbon-reporting readiness are increasingly significant for enterprise buyers.
The IT Services Market Report covers Service Type (IT Consulting, Implementation, etc.), End-User Enterprise Size (SMEs, etc.), Deployment Model (Onshore, Nearshore, etc.), End-User Vertical (BFSI, Manufacturing, etc.), and Geography (North America, South America, etc.). Market forecasts are provided in USD.
Geography Analysis
North America accounts for 37.05% of 2025 revenue, driven by USD 2.7 trillion in tech spending. Federal mandates demanding AI governance intensify demand for strategic advisory services. Canada's digital-government initiatives and natural-resource automation fuel growth, while Mexico's nearshore appeal draws U.S. firms. Asia-Pacific records an 11.12% CAGR through 2031, fueled by advancements in smart cities, manufacturing, and telecom among others. Europe designates EUR 489.8 billion to IT services, with significant investments in cloud programs driven by regulatory frameworks.
Key Topics Covered
1 INTRODUCTION
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2 RESEARCH METHODOLOGY
3 EXECUTIVE SUMMARY
4 MARKET LANDSCAPE
4.1 Market Overview
4.2 Market Drivers
4.3 Market Restraints
4.4 Industry Value Chain Analysis
4.5 Impact of Macroeconomic Factors
4.6 Evaluation of Critical Regulatory Framework
4.7 Technological Outlook
4.8 Porter's Five Forces Analysis
5 MARKET SIZE AND GROWTH FORECASTS (VALUE)
5.1 By Service Type
5.2 By End-User Enterprise Size
5.3 By Deployment Model
5.4 By End-user Vertical
5.5 By Geography
6 COMPETITIVE LANDSCAPE
6.1 Market Concentration
6.2 Strategic Moves
6.3 Market Share Analysis
6.4 Company Profiles
7 MARKET OPPORTUNITIES AND FUTURE OUTLOOK
7.1 White-space and Unmet-Need Assessment
A selection of companies mentioned in this report includes, but is not limited to:
- Accenture plc
- International Business Machines Corporation (IBM)
- Tata Consultancy Services Limited (TCS)
- Infosys Limited
- Cognizant Technology Solutions Corporation
- Capgemini SE
- Wipro Limited
- HCL Technologies Limited
- DXC Technology Company
- Atos SE
- Fujitsu Limited
- NTT DATA Corporation
- CGI Inc.
- L&T Technology Services Limited
- Tech Mahindra Limited
- EPAM Systems Inc.
- Endava plc
- Globant S.A.
- Mindtree Limited
- Sopra Steria Group SA
- Rackspace Technology Inc.
- Virtusa Corporation
- Persistent Systems Limited
- UST Global Inc.
For more information about this report visit https://www.researchandmarkets.com/r/m0hugb
About ResearchAndMarkets.com
ResearchAndMarkets.com is the world's leading source for international market research reports and market data. We provide you with the latest data on international and regional markets, key industries, the top companies, new products and the latest trends.
