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        Information Technology Services Industry Profile

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        Excerpt from Information Technology Services Industry Profile

        Companies in this industry provide services such as software support, computer systems design, and data processing facilities management. Major companies include Cognizant, DXC Technology, and the technology consulting arm of IBM (all based in the US), along with Accenture (Ireland), Capgemini (France), and these India-based companies such as HCL Technologies, Infosys, Tata Consultancy Services (TCS), and Wipro.

        Worldwide spending on IT services is about $993 billion annually, according to Gartner. Top exporters of computer services include the EU, India, the US, Singapore, and Israel, according to the World Trade Organization. A digital divide regarding access to and use of information and communication technologies hinders Africa's participation in exports of IT services.

        The US information technology (IT) services industry includes about 143,000 establishments (single-location companies and units of multi-location companies) with combined annual revenue of more than $442 billion.

        COMPETITIVE LANDSCAPE

        Demand for IT services is driven by rapid technological advances, but spending depends on the health of the economy. The profitability of companies depends on technical expertise, innovative services, and effective marketing. Large companies have advantages in broad service offerings and global reach, which give them the ability to provide outsourcing services to big corporate customers. Small companies can compete effectively by specializing in market niches or by partnering with larger companies that want to broaden their mix of services. The US industry is fragmented: the 50 largest companies account for about 40% ...

         
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