- /
- All Industries /
- Business and Industrial /
- Services /
- UK IT Services Market Report 2023
“The term ‘tech-celeration’ is being adopted to describe the constantly accelerating rate of development driving the IT sector. There is no shortage of developments driving rapid and profound changes to the IT structure and the capabilities and prospects of organisations that correctly adopt them. The IT services market development is driven by these technologies, including the trend to the highly topical artificial intelligence following the November 2022 launch of ChatGPT. Yet this is just one of a range of highly transformative and disruptive technologies being adopted and adapted.”
– Terry Leggett, Principal Analyst
Key issues covered in this Report
- How rapid development is driving the market including highly transformative technologies including artificial intelligence; machine learning; edge and quantum computing; cybersecurity; blockchain and virtual and augmented reality following on from cloud computing.
- How market growth has been accelerated by economic disruption.
- How IT has extended to the entirety of the workplace and functions with different implications for the IT service providers.
- Why and how M&A activity remains strong in the IT services market.
Collapse All
-
Overview
- Key issues covered in this Report
- Products covered in this Report
-
Executive Summary
- The five-year outlook for IT services
- Figure 1: IT services outlook, 2023-27
- The market
- Market size and forecast
- Figure 2: Market size of IT services, 2017-27 (£ billion)
- Market segmentation
- Figure 3: Segmentation of IT services, by activity, 2017-22 (£ billion)
- End-use markets
- Figure 4: Segmentation of IT services market, by end use, 2022 (£ billion)
- Market drivers
- Companies and brands
- UK sector
- Continued M&A activity
- Figure 5: M&A activity in the UK IT services sector, Q1 2021-Q4 2022 (number)
- Figure 6: Analysis of Q4 M&A deals, by activity, 2022 (%)
- The five-year outlook for IT services
-
Issues and Insights
- Technology trends driving the market
- Artificial Intelligence and Machine Learning
- Edge Computing and Quantum Computing
- Cybersecurity
- Blockchain
- Virtual Reality and Augmented Reality
- 2023 – the year of AI?
-
Market Size and Performance
- Background
- Figure 7: Trend in contracted-out services typically covered under facilities management, 2017-22 (£ billion)
-
- Figure 8: Respondents identifying outsourcing of IT functions, by service, 2022 (%)
- The UK market
-
- Figure 9: Market for IT services, 2017-22 (£ billion)
- Background
-
Market Forecast
- Technology the driving force
- Figure 10: IT services outlook, 2023-27
- More disruptive technologies, more market growth
-
- Figure 11: Market forecast for IT services, 2022-27 (£ billion)
- Technology the driving force
-
Market Segmentation by Activity
- Overview
-
- Figure 12: Segmentation of IT services, by activity, 2017-22 (£ billion)
- Consultancy
-
- Figure 13: Segmentation of IT consultancy activity, 2022 (£ billion)
- Outsourcing and services
-
- Figure 14: Segmentation of the IT outsourcing and services sector, 2022 (£ billion)
-
Market Segmentation by End Use
- Diverse applications
- Figure 15: Segmentation of IT services market, by end use, 2022 (£ billion)
- Diverse applications
-
Market Drivers
- The economic situation
- Inflation is the key concern for consumers and brands…
- …and despite government support, energy prices are still a major concern
- Rising interest rates mean that the pressure will move up to middle- and higher-income households
- High inflation and rising interest rates will compound the impact of the slowing recovery
- Consumer spending power will be curbed
- Unemployment is at a near 50-year low
- Consumers’ financial wellbeing has fallen from the highs of 2021…
-
- Figure 16: Household financial wellbeing index, 2009-22 (index)
- …and most people are feeling the effects of price rises
- Geopolitical situation
- Global digitisation continues to grow
- Figure 17: Worldwide internet usage, by region, 2022 (millions and %)
-
- Figure 18: Worldwide internet penetration, 2000-22 (% of world population)
- UK digital development
- Internet users
- Social media impact
- Digital banking development
-
- Figure 19: The future of digital banking, by age, 2022-27 (% of people)
- Corporate internet reliance
-
- Figure 20: Percentage of companies and charities with digital services, 2022 (% of companies and % of charities)
- eCommerce development
-
- Figure 21: Market size of ecommerce, 2017-22 (£ billion)
- Cloud computing
-
- Figure 22: Market size for cloud computing, 2017-22 (£ billion)
-
- Figure 23: Cloud strategies, 2022 (% of companies)
- Figure 24: Cloud migration challenges, 2021 and 2022 (% of respondents)
- Cybersecurity
- Figure 25: Trends in the proportion of businesses identifying cyberattacks, 2017-22 (proportion of businesses)
-
- Figure 26: Security incidents reported to the Information Commissioner’s Office, by sector, 2022 (number)
-
- Figure 27: Market size for cybersecurity, 2017-22 (£ billion)
-
- Figure 28: Average costs of most disruptive breaches and attacks, by size of company, 2022 (in £s)
- Figure 29: Proportions of organisations taking specific actions following a breach with material outcomes, 2022 (% of organisations)
-
Industry Structure
- Overview
-
- Figure 30: M&A activity in the UK IT services sector, Q1 2021-Q4 2022 (number)
- Figure 31: Analysis of Q4 M&A deals, by activity, 2022 (%)
- IT consultancy
- Figure 32: Development of the IT consultancy sector, 2018-22 (number)
- Figure 33: Financial structure of the IT consultancy sector, by turnover, 2022 (number of companies)
- IT facilities management consultancy
- Figure 34: Development of the IT facilities management consultancy sector, 2018-22 (number)
- Figure 35: Financial structure of the IT facilities management consultancy sector, by turnover, 2022 (number of companies)
- IT other services
-
- Figure 36: Development of the IT other services sector, 2018-22 (number)
- Figure 37: Financial structure of the IT other services sector, by turnover, 2022 (number of companies)
-
Company Profiles
- Accenture
- Activity
- Figure 38: Revenue segmentation of Accenture, by industry, 2022 (US$ million)
- Performance
- Figure 39: Financial development of Accenture (UK), 2017-21 (£ million)
- Strategy
- Capgemini
- Activity
- Figure 40: Segmentation of Capgemini revenues, by business, 2022 (%)
-
- Figure 41: Geographic segmentation of Capgemini revenues, 2022 (€ million)
- Figure 42: End-use segmentation of Capgemini revenues, 2020 (%)
- Performance
- Figure 43: Financial development of Capgemini UK, 2017-21 (£ million)
- Figure 44: Segmentation of Capgemini UK revenues, by business, 2022 (£ million)
- Strategy
- DXC Technology
- Activity
- Performance
- Figure 45: Financial development of DXC Technology, 2018-22 (US$ million)
-
- Figure 46: Geographic segmentation of DXC Technology revenues, 2018-22 (US$ million)
- Figure 47: Development of DXC Technology revenues, by sector, 2018-22 (US$ million)
-
- Figure 48: Segmentation of DXC Technology revenues, by technology, 2021 (US$ billion)
- Strategy
- FDM Group (Holdings)
- Activity
- Performance
- Figure 49: Financial development of FDM Group (Holdings), 2017-21 (£ million)
- Figure 50: Revenue segmentation of FDM Group (Holdings), by region, 2017-21 (£ million)
-
- Figure 51: Revenue segmentation of FDM Group (Holdings) by region, H1 2022 (£ million)
- Strategy
- Kyndryl
- Activity
- Performance
- Figure 52: Financial development of Kyndryl, primarily under IBM ownership, 2019-21 (US$ million)
-
- Figure 53: Financial development of Kyndryl, post Spin-out, Q1 2021-Q3 2022 (US$ million)
-
- Figure 54: Segmentation of Kyndryl revenues, by practice, Q3 FY2022/23 (%)
- Figure 55: Segmentation of Kyndryl revenues, by industry, Q3 FY2022/23 (%)
- Strategy
- Tata Consultancy Services
- Activity
- Performance
- Figure 56: Financial development of Tata Consultancy Services, 2018-22 (crore)
- Figure 57: Segmentation of Tata Consulting Services revenues, by industry, 2022 (%)
-
- Figure 58: Segmentation of Tata Consulting Services revenues, by region, 2022 (%)
- Strategy
-
Appendix – Data Sources, Abbreviations and Supporting Information
- Abbreviations
-
Appendix – Forecast Methodology
- Market forecast and prediction intervals
- Figure 59: Market forecast for IT services, 2022-27 (£ billion)
- Market drivers and assumptions
- Market forecast and prediction intervals
-
Further Sources and Contacts
- Trade magazines
Why Mintel?
Gain access to high quality market research with every purchase of Mintel’s reports.
Browse our sample PDF report below:
Please Note: All of the figures, graphs, and tables have been redacted.
£ 1,495 (Excl.Tax)
- Save 10% on all purchases with the code: INSIGHTS2024. Offer available until 31st December.
Is this report right for you?
From consumer reports to customised growth strategies. We have an option to suit your business requirements.
Find out morePopular Related Reports
Global Outlook on Sustainability: A Consumer Study 2024-25
£ 5,000 – £ 21,600
Mintel’s 2024-25 Global Outlook on Sustainability: A Consumer Study is designed to help you understand what brands and companies should prioritise in order to educate consumers and ensure...
Find out moreUK Future of TV and Video Report 2024
£ 2,195
TV broadcasters/services are increasingly competing with social media platforms. 64% of UK TV/video viewers aged 16-34 prefer to watch videos from content creators...
Find out moreUK Smartwatches and Wearable Technology Market Report 2024
£ 2,195
The smartwatch market continues to grow, but at a slower rate than in the previous years. Future growth is likely tempered by a flattening out of demand, as...
Find out moreUK Future of Technology in the Home Market Report 2024
£ 2,195
While 83% of consumers have some sort of smart device at home, 37% of them don't control their smart home devices. In addition to the limited number of...
Find out moreUK Future of Gaming Report 2024
£ 2,195
87% of console gamers including those using handheld consoles say they are satisfied with the quality of graphics on offer. There continues to be sustained effort to improve...
Find out moreUK In Car Technology Market Report 2024
£ 2,195
Safety features and cost concerns dominate consumer preferences, with a focus on value and reliability in new vehicle technologies.Manufacturers should expedite the development and integration of automated diagnostic...
Find out moreTrusted by global industry leaders
We have such a great working relationship with Mintel on lots of different levels. As an insight partner, they have helped us to develop our business planning in specific categories as well as supporting our creative process but they’ve also been super helpful with facilitating our events in their inspirational offices near St Paul’s.
They’re an innovative company, with a client-focused team that always delivers.
Abby Carvosso, Group Managing Director, Bauer Media Group
At Jackman, we believe that powerful strategies are based on human insight. Mintel’s leading-edge reports and insights into consumer attitudes and behaviors are an important input as we develop and execute strategy.
Alana Gavin, VP Research and Insights, Jackman
We use Mintel Reports, mostly for financial services and ecommerce markets, plus a few retail and technology ones.
As a leading payments provider, we value additional insights into consumer behaviour, opinions and trends that are shaping the many different markets we operate in. Mintel is a very good and very quick way for us to obtain those insights.
We use Mintel to get a view on where a particular market is going, which can support us in product development and help us identify opportunities or indeed risks, it is a very useful barometer of a market’s potential.
Andrew Neeson, Market Intelligence Manager, VocaLink
One of the biggest challenges we face is the need to get smart on a business or category real quick.
We are talking to clients who live and breathe their category every day and the expectation is that we will be able to get caught up very quickly, and bring the thinking that can help them.
We need to do that often in a matter of days, so it’s not a small ask. Mintel gives us a very articulate view of category conditions and does so at the speed we need it.
Jeff White, Business Development Director, Deutsch
There is no question that Mintel is the go-to resource for the best quality market research, but I did not think it was an affordable option for Abacus Marketing to consider. As a small marketing agency, we only work with a few new clients each year.
However, we have a very high-end consultative approach to our work, so we really do need a partner like Mintel to provide the big agency experience we are always aiming to deliver. Our clients come from an incredibly diverse range of industry sectors, so we obviously need access to market research reports from a very wide spectrum of marketplaces – and that is precisely what we got.
Stephen Taylor-Brown, Managing Director, Abacus
Is this report right for you?
From consumer reports to customised growth strategies. We have an option to suit your business requirements.
Find out moreSearch
My Cart
Loading...