2023
9
UK IT Services Market Report 2023
2023-05-31T04:03:52+01:00
OX1154817
1495
163608
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Report
en_GB
“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…

UK IT Services Market Report 2023

£ 1,495 (Excl.Tax)

Description

“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.

Table of Contents

  1. Overview

    • Key issues covered in this Report
    • Products covered in this Report
  2. 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 (%)
  3. 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?
  4. 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)
  5. 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)
  6. 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)
  7. Market Segmentation by End Use

    • Diverse applications
      • Figure 15: Segmentation of IT services market, by end use, 2022 (£ billion)
  8. 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)
  9. 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)
  10. 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
  11. Appendix – Data Sources, Abbreviations and Supporting Information

    • Abbreviations
  12. Appendix – Forecast Methodology

    • Market forecast and prediction intervals
      • Figure 59: Market forecast for IT services, 2022-27 (£ billion)
    • Market drivers and assumptions
  13. Further Sources and Contacts

    • Trade magazines

About the report

This market report provides in-depth analysis and insight supported by a range of data. At the same time, introductory and top-level content is provided to give you an overview of the issues covered.

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