2021
9
UK IT Services Market Report 2021
2021-03-25T03:06:34+00:00
OX1042429
1495
135844
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Report
en_GB
“COVID-19 has forced an even more rapid migration to digital processes. The IT services market has continued to grow despite facing major challenges. One impact is that the pandemic has…

UK IT Services Market Report 2021

£ 1,495 (Excl.Tax)

Report Summary

Providing the most comprehensive and up-to-date information and analysis of the UK IT Services market, including the behaviours, preferences and habits of the consumer.

The lockdowns from the COVID-19 pandemic has caused an increased momentum to the already accelerating process of digitisation and cloud computing. With many companies forced to move to home working due to the closure of non-essential businesses, the market size for 2021 has risen to £129.5 billion from £114.2 billion in 2019.

Many companies pre-existing IT infrastructures were never designed to handle this shift to working from home, resulting in an increased demand for new IT infrastructure and digital development services. Conventional approaches to IT services are being steadily disrupted by the irreversible shift towards digitisation and will be further enhanced as the post-pandemic recovery period prioritises efficiency and productivity.

This report covers the current state of the market as restrictions begin to lift, as well as the positive and negative effects the COVID-19 pandemic has had on companies. While there may be corporate casualties in the short term thanks to disruption to end-use markets, the ever increasing momentum towards cloud computing could open up many new market opportunities for companies heading in to the future.

Quickly understand

  • How the COVID-19 impact has accelerated corporate digital development.
  • The continued rate of growth of the market despite the widespread economic disruptions.
  • How cloud computing is impacting the market.
  • How IT infrastructures were not developed or designed for the level of remote working seen in 2020.

Covered in this report

Industry Users: Agriculture, mining, manufacturing, electricity, gas, water, construction, retail, transport, hotels, restaurants, information and communications, insurance and finance, real estate, professions, administration, public administration, health, education, arts and entertainment, wholesale, storage, utilities, accommodation, banking, media, government, pharmaceuticals.

Services: Applications, systems Integration, strategy, network, distributed environment, mainframe, desktop, hardware support.

Brands: Microsoft, Accenture, Capgemini, DXC Technology, FDM Group, IBM, Wipro.

Expert analysis from a specialist in the field

Written by Terry Leggett, a leading analyst in the B2B sector, his extensive knowledge delivers in-depth commentary and analysis to highlight current trends and add expert context to the numbers.

COVID-19 has forced an even more rapid migration to digital processes. The IT services market has continued to grow despite facing major challenges. One impact is that the pandemic has permanently changed the way companies operate but the growth in cloud computing and digitisation has accelerated with new issues arising such as the major growth in remote working and internet-based communication tools.

Terry Leggett
Senior Analyst

Table of Contents

  1. Overview

    • Key issues covered in this Report
    • COVID-19: market context
    • Economic and other assumptions
    • Products covered in this Report
  2. Executive Summary

    • Impact of COVID-19 on IT services
      • Figure 1: Short, medium and long-term impact of COVID-19 on IT services, prepared on 5 March 2021
    • The market
    • Market size and forecast
      • Figure 2: Market size for IT services sector, 2015-25 (prepared on 5 March 2021)
    • Major areas of activity
      • Figure 3: Segmentation of IT services, by activity, 2015-25 (prepared on 5 March 2021)
    • IT consultancy
      • Figure 4: Segmentation of IT consultancy activity, 2020 (£ billion)
    • Outsourcing and services
      • Figure 5: Segmentation of the IT outsourcing and services sector, 2020 (£ billion)
    • Demand from every sector
      • Figure 6: Segmentation of the IT services market, by end-use industry, 2020
    • Companies and brands
    • IT consultancy
      • Figure 7: Development of the IT consultancy sector, 2016-20
    • IT facilities management
      • Figure 8: Development of the IT facilities management sector, 2016-20
    • IT other services
      • Figure 9: Development of the IT other services sector, 2016-20
  3. Issues and Insights

    • Has COVID-19 permanently changed the landscape?
    • Clouding the future
  4. The Market – Key Takeaways

    • COVID-19 stimulates further growth
    • It’s not all plain sailing
    • Varied demand
  5. Market Size and Forecast

    • COVID-19 accelerates digital development
      • Figure 10: Short, medium and long-term impact of COVID-19 on IT services, prepared on 5 March 2021
    • The market
      • Figure 11: Market size for IT services sector, 2015-25 (prepared on 5 March 2021)
    • Market drivers and assumptions
      • Figure 12: Key drivers affecting Mintel’s market forecast, 2015-25 (prepared on 5 March 2021)
    • Forecast methodology
  6. Market Segmentation by Activity

    • Overview
      • Figure 13: Segmentation of IT services, by activity, 2015-25 (prepared on 5 March 2021)
    • IT consultancy
      • Figure 14: Segmentation of IT consultancy activity, 2020 (£ billion)
    • Outsourcing and services
      • Figure 15: Segmentation of the IT outsourcing and services sector, 2020 (£ billion)
  7. Market Segmentation by Industry

    • Every sector involved
      • Figure 16: Segmentation of the IT services market, by end-use industry, 2020
  8. Market Drivers

    • Impact of COVID-19 – Remote working
      • Figure 17: Number of people mainly working from home, 2015-19
    • Digitisation
    • The key to productivity
      • Figure 18: Labour productivity in the UK compared with other major economies, 2010-19
    • The COVID-19 impact
      • Figure 19: UK labour productivity, output per hour and per worker, Q1 2017-Q3 2020
    • Internet growth
      • Figure 20: Worldwide internet usage, by region, 2000 and 2020 (millions and %)
      • Figure 21: Proportion of UK businesses with internet access in the UK, by size of company, 2014-19 (%)
      • Figure 22: Residential fixed-line broadband coverage across the UK and nations, March 2020
      • Figure 23: Proportion of employees using computers and the internet for their business, by size of company, 2019
      • Figure 24: Segmentation of employees with work internet access, by size of company, 2019 (million)
    • Website use by companies
      • Figure 25: Proportion of UK businesses with websites, by size of business, 2019
      • Figure 26: Proportion of companies with various capabilities on their websites, by size of business, 2019
    • eCommerce
      • Figure 27: Development of B2B and B2C ecommerce revenues, 2014-19
      • Figure 28: Segmentation of ecommerce, by B2B and B2C activities, 2014-19
      • Figure 29: eCommerce sales, by sector, 2019
    • The cloud
      • Figure 30: Market size for cloud computing, 2015-25 (prepared on 5 November 2020)
      • Figure 31: Segmentation of SaaS usage, by sector, 2019
  9. Companies and Brands – Key Takeaways

    • COVID-19
    • Acquisitions – A key strategy
    • Diverse industry participants
  10. Industry Structure

    • Overview
    • IT consultancy
      • Figure 32: Development of the IT consultancy sector, 2016-20
      • Figure 33: Financial structure of the IT consultancy sector, by turnover, 2020 (number)
    • IT facilities management
      • Figure 34: Development of the IT facilities management sector, 2016-20
      • Figure 35: Analysis of the financial structure of the IT facilities management sector, 2020 (number)
    • IT other services
      • Figure 36: Development of the IT other services sector, 2016-20
      • Figure 37: Analysis of the financial structure of the IT other services sector, 2020 (number)
  11. Competitive Strategies

    • The COVID-19 impact
    • Acquisition activity
  12. Company Profiles

    • Accenture
    • Activity
    • Performance
      • Figure 38: Financial summary of Accenture (UK), 2016-20 (£ million)
    • Strategy
    • Capgemini
    • Activity
      • Figure 39: Segmentation of Capgemini revenues, by sector, 2020
    • Performance
      • Figure 40: Financial summary of Capgemini UK, 2015-19 (£ million)
    • Strategy
    • DXC Technology
    • Activity
    • Performance
      • Figure 41: Revenue breakdown of DXC Technology, 2020 (US$ billion)
    • Strategy
    • FDM Group (Holdings)
    • Activity
    • Performance
      • Figure 42: Financial performance of FDM Group (Holdings), 2015-19
      • Figure 43: Revenue segmentation for FDM Group (Holdings), 2019
    • Strategy
    • IBM
    • Activity
    • Performance
      • Figure 44: Financial performance of IBM United Kingdom, 2015-19 (£ million)
    • Strategy
    • Wipro
    • Activity
    • Performance
      • Figure 45: Financial performance of Wipro, 2016-20 (IR billion)
    • Strategy
  13. Appendix – Data Sources, Abbreviations and Supporting Information

    • Abbreviations

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.

Market

Mintel provides a range of market information, frequently through the category level, including market size and forecasting, complete with market drivers that illustrate the forces that shape a category or market.

Consumer

Mintel’s proprietary consumer research provides our analysts with the attitudinal and behavioral data used to provide valuable insight to topical issues.

Brand/Company

Mintel provides overviews of the top brands and manufacturers, and uses consumer research to explore attitudes and reactions to brands, as well as insight into what will resonate with consumers.

Data

Market reports provide appendices of data to support the research and insight produced. Our databooks* are easily manipulated and downloadable to support your research needs and covers factors from consumer attitudes to market forecasts.

*databooks not available with UK B2B Industry reports.

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