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November 8, 2016 |

Worldwide Services Revenues Expected to Pass $1 Trillion for the First Time by 2018, Says IDC

FRAMINGHAM, Mass.–(BUSINESS WIRE)–According to a new forecast from the International Data Corporation (IDC) Worldwide Semiannual Services Tracker, IT Services and Business Services revenues are poised to pass the $1 trillion mark for the first time in 2018. Worldwide services spending totals for 2016 are expected to stay within the $900 billion range and by 2020 expected to near $1.1 trillion.

FRAMINGHAM, Mass.–(BUSINESS WIRE)–According to a new forecast from the International Data Corporation (IDC) Worldwide Semiannual Services Tracker, IT Services and Business Services revenues are poised to pass the $1 trillion mark for the first time in 2018. Worldwide services spending totals for 2016 are expected to stay within the $900 billion range and by 2020 expected to near $1.1 trillion.

Worldwide Services Revenue by Category in Billions

On a geographic basis, the United States is expected to generate the largest percentage of services spending throughout the forecast period, followed by Western Europe. The fastest growing regions will be Latin America, then the Middle East and Africa (MEA), which is poised to surpass Canada’s services spending by 2017. Among the major global regions, Asia/Pacific (including Japan) is forecast to have the highest overall growth rate.

Global Regional Services Year-Over-Year Revenue Growth

With more than $100 million worth of spending each 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. Business Consulting Services is forecast to outpace both markets in terms of growth.

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.”

“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. As the demand for these services grows, often in double digits, service firms who invest in the right skills and assets around IDC’s Third Platform of cloud, big data, social, and mobility, as well as Innovation Accelerators such as next generation security and IoT, will see their growth prospects shift away from legacy IT services, which are on the decline and towards the digital opportunity that lies ahead,” said Rebecca Segal, group vice president, Worldwide Services.

In addition to the table above, an interactive graphic showing worldwide cloud-related vs. non-cloud services revenue percentage splits for 2015 and 2016 is available here. The chart is intended for public use in online news articles and social media. Instructions on how to embed this graphic can be found by viewing this press release on IDC.com.

About IDC Trackers

IDC Tracker products provide accurate and timely market size, vendor share, and forecasts for hundreds of technology markets from more than 100 countries around the globe. Using proprietary tools and research processes, IDC’s Trackers are updated on a semiannual, quarterly, and monthly basis. Tracker results are delivered to clients in user-friendly excel deliverables and on-line query tools. The IDC Tracker Charts app allows users to view data charts from the most recent IDC Tracker products on their iPhone and iPad. The IDC Tracker Chart app is also available for Android Phones and Android Tablets.

For more information about IDC’s Worldwide Semiannual Services Tracker, please contact Kathy Nagamine at 650-350-6423 or knagamine@idc.com.

About IDC

International Data Corporation (IDC) is the premier global provider of market intelligence, advisory services, and events for the information technology, telecommunications, and consumer technology markets. With more than 1,100 analysts worldwide, IDC offers global, regional, and local expertise on technology and industry opportunities and trends in over 110 countries. IDC’s analysis and insight helps IT professionals, business executives, and the investment community to make fact-based technology decisions and to achieve their key business objectives. Founded in 1964, IDC is a wholly-owned subsidiary of International Data Group (IDG), the world’s leading media, data and marketing services company. To learn more about IDC, please visit www.idc.com. Follow IDC on Twitter at @IDC.

Contacts
IDC
Lisa Nagamine, 310-702-2528
lnagamine@idc.com
or
Wilvin Chee, +852-2905-4242
wchee@idc.com
or
Michael Shirer, 508-935-4200
press@idc.com


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