2022
9
UK IT Services Market Report 2022
2022-03-05T03:03:59+00:00
OX1100331
1495
148472
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“COVID-19 accelerated the implementation of digital programs across all sectors, and so boosted the already rapid development of IT services. While businesses initially concentrated on remaining operative, there are long-term…
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  5. UK IT Services Market Report 2022

UK IT Services Market Report 2022

B2B Industry ReportsServicesTechnologyUK

The UK IT Services report identifies consumer attitudes towards corporate digital development, cloud computing, and IT infrastructures in the UK. This market report covers the market size, market forecast, market segmentation and industry trends for the IT Services market in the UK.

Current Market Landscape

The IT services market has shown strong growth throughout the economic disruption of COVID-19 as companies have accelerated their digital programmes in order to remain operative under unprecedented conditions. The market addresses virtually every sector of business and naturally there has been a wide variation in activities between end-use markets.

  • IT represents around 18.5% of the overall turnover of general management consultants.
  • 96% of businesses and 88% of charities use at least one digital service.
  • 58% of private businesses hold some personal customer information electronically.

The new challenge of industry and commerce in 2022 include the impact of rising inflation, which only serves to concentrate the minds of end users on cost control and supply chain security, providing a further stimulus to the dynamic market. Increasingly, IT is involving every discipline of business and this is further stimulating demand for consultancy services, while outsourcing is also buoyant as companies seek to maximise their systems with a strong cost emphasis.

Future Market Trends in IT Services 

Strong continued growth is forecast for the market as further disruptive technologies bring new opportunities and companies seek to integrate the increasingly powerful capabilities of artificial intelligence and machine learning. There are a host of new developments that will sustain the market over the next few years, including quantum computing and edge computing as data volumes continue to spiral. Companies are also continuing to redeploy their IT infrastructures to the cloud.

There are few obstacles to the growth of the market, and this is giving rise to structural changes as companies seek to gain share in what remains a highly competitive and international market.

Read on to discover more details or take a look at all of our UK Technology and Telecoms market research

Quickly understand

  • How the impact of COVID-19 accelerated corporate digital development.
  • The continued rate of growth of the market throughout the widespread economic disruptions.
  • How cloud computing is impacting the market and the other technological changes stimulating the market.
  • How IT infrastructures were not developed or designed for the level of remote working seen in 2020, but hybrid working has similar implications for IT infrastructure in 2022.

Covered in this report

Brands: DXC Technology, FDM Group, Kyndryl, Tata Consultancy Services.

Expert analysis from a specialist in the field

This report, written by Terry Leggett, a leading analyst in the Retail sector, delivers in-depth commentary and analysis to highlight current trends and add expert context to the numbers.

COVID-19 accelerated the implementation of digital programs across all sectors, and so boosted the already rapid development of IT services. While businesses initially concentrated on remaining operative, there are long-term implications, including negative effects on some industry sectors, but also new hybrid working practices with all the security implications of remote working. Nonetheless, the fundamental driving forces over the next few years will be the increasingly rapid evolution of technology, involving ever more sophisticated AI and ML capabilities, rapid data transmission becoming increasingly available, and the wider adoption of IoT leading to edge computing alongside cloud capabilities.

Terry Leggett - Research AnalystTerry Leggett
Senior Analyst

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  1. Overview

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

  2. Executive Summary

    • The five-year outlook for IT services
      • Figure 1: IT services outlook, 2022-26
    • The market
    • Market size and forecast
      • Figure 2: Market size of IT services, 2016-26
    • Segmentation by activity
      • Figure 3: Segmentation of IT services, by activity, 2016-21
    • IT consultancy
      • Figure 4: Segmentation of IT consultancy activity, 2021 (£ billion)
    • Outsourcing and services
      • Figure 5: Segmentation of the IT outsourcing and services sector, 2021 (£ billion)
    • Widespread end-use market
      • Figure 6: Segmentation of IT services market, by end use, 2021
    • Companies and brands
    • Market growth attracts M&A activity
      • Figure 7: IT services M&A transaction levels, 2016-21
    • Consultancy
      • Figure 8: Development of the IT consultancy sector, 2016-21
    • IT other services
      • Figure 9: Development of the IT other services sector, 2016-21

  3. Issues and Insights

    • Long-term COVID-19 implications
    • 2022 and beyond

  4. Market Size and Performance

    • COVID-19 further stimulates the market
      • Figure 10: Market for IT services, 2016-21

  5. Market Forecast

    • New digital challenges, new opportunities
      • Figure 11: IT services outlook, 2022-26
    • Continued strong growth
      • Figure 12: Market forecast for IT services, 2021-26
    • Market drivers and assumptions
      • Figure 13: Key drivers affecting Mintel’s market forecast, 2015-26
    • Forecast methodology

  6. Market Segmentation by Activity

    • Overview
      • Figure 14: Segmentation of IT services, by activity, 2016-21
    • IT consultancy
      • Figure 15: Segmentation of IT consultancy activity, 2021 (£ billion)
    • Outsourcing and services
      • Figure 16: Segmentation of the IT outsourcing and services sector, 2021 (£ billion)

  7. Market Segmentation by End Use

    • Widespread market
      • Figure 17: Segmentation of IT services market, by end use, 2021

  8. Market Drivers

    • The UK economy
    • GDP reached pre-pandemic levels in November 2021
    • The post-COVID-19 bounce back will be followed by a period of slower growth
    • Employment has held up better than expected
    • Inflationary pressures are mounting
    • Summary of key economic data, 2020-26
      • Figure 18: Key economic data, 2020-26
    • The COVID-19 impact on digitisation
      • Figure 19: Location of working adults, 2020-2021
    • The connected society
      • Figure 20: Worldwide internet usage, by region, 2021 (millions and %)
      • Figure 21: UK adult internet usage, 2013-20
    • The digital footprint of businesses
      • Figure 22: Percentage of companies and charities with digital services, 2021
    • Cloud computing
      • Figure 23: Market size for cloud computing, 2016-21
      • Figure 24: Cloud migration challenges, 2021
      • Figure 25: Segmentation of SaaS usage, by sector, 2020
    • eCommerce
      • Figure 26: eCommerce market, 2016-21
      • Figure 27: Segmentation of ecommerce market, by end use, 2016-21
      • Figure 28: Segmentation of ecommerce market, by channel, 2016-21

  9. Industry Structure

    • Overview
    • IT consultancy
      • Figure 29: Development of the IT consultancy sector, 2016-21
      • Figure 30: Financial structure of the IT consultancy sector, by turnover, 2021
    • IT facilities management
      • Figure 31: Development of the IT facilities management sector, 2016-21
      • Figure 32: Financial structure of the IT facilities management sector, by turnover, 2021
    • IT other services
      • Figure 33: Development of the IT other services sector, 2016-21
      • Figure 34: Financial structure of the IT other services sector, by turnover, 2021

  10. Competitive Strategies

    • The one-stop approach
    • M&A activity strong in 2021
      • Figure 35: IT services M&A transaction levels, 2016-21
    • SMEs play a part

  11. Company Profiles

    • Accenture
    • Activity
      • Figure 36: Segmentation of Accenture revenues, 2021 (US$ million)
    • Performance
      • Figure 37: Financial performance of Accenture (UK), 2016-20 (£ million)
    • Strategy
    • Capgemini
    • Activity
      • Figure 38: Geographical segmentation of Capgemini revenues, 2020
      • Figure 39: Segmentation of Capgemini revenues, 2020
    • Performance
      • Figure 40: Financial performance of Capgemini UK, 2016-20 (£ million)
      • Figure 41: Segmentation of Capgemini UK Revenues, 2020
    • Strategy
    • DXC Technology
    • Activity
    • Performance
      • Figure 42: Financial performance of DXC Technology, 2018-21 (US$ million)
      • Figure 43: Geographic segmentation of DXC Technology revenues, 2018-21 (US$ million)
      • Figure 44: Segmentation of DXC Technology revenues, 2021
    • Strategy
    • FDM Group (Holdings)
    • Activity
    • Performance
      • Figure 45: Financial performance of FDM Group (Holdings), 2016-20 (£ million)
      • Figure 46: Geographic segmentation of FDM Group (Holdings) revenue, 2020 (£ million)
    • Strategy
    • Kyndryl
    • Activity
    • Performance
      • Figure 47: Financial performance of Kyndryl as part of IBM, 2019-21 (US$ million)
    • Strategy
    • Tata Consultancy Services
    • Activity
    • Performance
      • Figure 48: Financial performance of Tata Consulting Services, 2017-21 (crore)
      • Figure 49: Segmentation of Tata Consulting Services revenues, 2021
      • Figure 50: Geographic segmentation of Tata Consulting Services revenue, 2021
    • Strategy

  12. Appendix – Abbreviations and Supporting Information

  13. Appendix: Forecast Methodology

    • Market forecast and prediction intervals
      • Figure 51: Market forecast for IT services, 2021-26 (£ billion)
    • Market drivers and assumptions
      • Figure 52: Key drivers affecting Mintel’s market forecast, 2021-26

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