Table of Contents
Executive Summary
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- The market
- Major growth factors
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- Figure 1: UK market for IT services, 2015-19
- Market driven by demands from every industry
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- Figure 2: segmentation of the IT services market, by end use industry, 2019
- Consultancy leading growth
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- Figure 3: Segmentation of IT services, by activity, 2015-19
- Cloud computing – a major driver
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- Figure 4: The cloud computing market, 2015-19
- Security and compliance – another major driver
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- Figure 5: UK market for computer security products and services, 2015-19
- Blockchain likely to be a major future driver
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- Figure 6: Changes in perceived organisational barriers to investment in blockchain technology, 2018 and 2019
- Strong growth expectations
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- Figure 7: Forecast market for IT services, 2020-24
- Companies and brands
- Huge industry dichotomy
- M&A activity not driven by consolidation
- What we think
Issues and Insights
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- Has the cloud made IT services economy independent?
- The facts
- The implications
- Is GDPR continuing to underpin growth?
- The facts
- The implications
The Market – What You Need to Know
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- Digital transformation at the heart of developments
- Consultancy leading growth
- Diverse demand
- Strong prospects
Market Size
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- Digital transformation driving growth
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- Figure 8: UK market for IT services, 2015-19
- Sector inflation stronger than early 2000s
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- Figure 9: Price indices of IT services, 2010-19 (2010 = 100)
- Seasonal variation reduced in 2019
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- Figure 10: Seasonal variation in the IT services market, 2019
Market Segmentation by Industry
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- Ubiquitous demand
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- Figure 11: segmentation of the IT services market, by end use industry, 2019
Market Segmentation by Activity
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- Overview
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- Figure 12: Segmentation of IT services, by activity, 2015-19
- IT consultancy
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- Figure 13: Segmentation of IT consultancy activity, 2019 (£ billion)
- Outsourcing and services
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- Figure 14: Segmentation of the IT outsourcing and services sector, 2019 (£ billion)
Market Forecast
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- Continued strong prospects
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- Figure 15: Forecast market for IT services, 2020-24
- Forecast segmentation
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- Figure 16: Forecast segmentation of the IT services market, 2020-24
The Impact of the Economy
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- GDP growth returns in Q3
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- Figure 17: UK GDP growth rate, 2012 – Q3 2019
- Figure 18: GDP growth levels in major EU economies, September 2019 (% annual change)
- Business investment and confidence suffering from uncertainty
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- Figure 19: UK business investment, £ million, Q1 2015 – Q3 2019
- Figure 20: UK ICT investment, £ million, Q1 2015 – Q3 2019
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- Figure 21: ICAEW UK National Business ConfidenceTM index, Q4 2013 – Q4 2019
Market Trends
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- Cloud computing
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- Figure 22: The cloud computing market, 2015-19
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- Figure 23: cloud computing revenue streams, 2015-19 (£ billion)
- Blockchain
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- Figure 24: Worldwide geographic segmentation of blockchain, 2017
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- Figure 25: Changes in perceived organisational barriers to investment in blockchain technology, 2018 and 2019
- It’s all about speed
- Superfast and ultrafast broadband
- 5G
- Artificial intelligence becoming commonplace
- The Internet of Things
Market Drivers
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- Continued internet growth
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- Figure 26: Worldwide internet usage, by region, 2000-19 (million)
- Figure 27: Proportion of UK businesses with internet access, by size of company, 2018
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- Figure 28: Proportion of employees using computers and the internet for their business, by size of company, 2018
- Figure 29: Breakdown of employees with work internet access, by size of company, 2018 (million)
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- Figure 30: Proportion of employees provided with a 3G portable device for accessing the internet for their business, by size of company, 2018
- Website use by companies
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- Figure 31: Proportion of UK businesses with websites, by size of business, 2018
- Figure 32: Proportion of companies with various capabilities on their websites, by size of business, 2018
- E-commerce
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- Figure 33: Development of B2B and B2C e-commerce, 2014-2018
- Figure 34: Proportion of industry sector turnover derived from e-commerce, by sector, 2018
- Security
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- Figure 35: UK market for computer security products and services, 2015-19
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- Figure 36: Average investment in cyber security, by sector, 2019
- Figure 37: Segmentation of the computer security market, by solution, 2019 (£ million)
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- Figure 38: Segmentation of the computer security market, by product/service, 2019 (£ million)
Companies and Brands – What You Need to Know
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- Many types of IT services providers
- A constantly evolving market creates demand
- Compliance a key driver
Industry Structure
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- Overview
- IT consultancy
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- Figure 39: Development of the IT consultancy sector, 2015-19
- Figure 40: Analysis of the financial structure of the IT consultancy sector, 2019 (number)
- IT facilities management
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- Figure 41: Development of the IT facilities management sector, 2015-19
- Figure 42: Analysis of the financial structure of the IT facilities management sector, 2019 (number)
- IT other services
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- Figure 43: Development of the IT other services sector, 2015-19
- Figure 44: Analysis of the financial structure of the IT other services sector, 2019 (number)
- Expected developments
Competitive Strategies
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- An international sector
- Diversity of industry concentrations
- Cloud computing, artificial intelligence and security are key focus areas
- Partnerships are key
- An acquisitive sector
Company Profiles
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- Accenture
- Activity
- Performance
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- Figure 45: Financial performance of Accenture (UK), 2014-18 (£ million)
- Strategy
- Capgemini
- Activity
- Performance
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- Figure 46: Financial performance of Capgemini UK, 2014-18 (£ million)
- Strategy
- DXC Technology
- Activity
- Performance
- Strategy
- FDM Group (Holdings)
- Activity
- Performance
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- Figure 47: Financial performance of FDM Group (Holdings), 2014-18 (£ million)
- Figure 48: Geographic analysis of FDM Group (Holdings) revenue, 2018 (£ million)
- Strategy
- IBM
- Activity
- Performance
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- Figure 49: Financial performance of IBM United Kingdom, 2014-18 (£ million)
- Strategy
- Wipro
- Activity
- Performance
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- Figure 50: Financial performance of Wipro, 2015-19 (million Indian Rupees)
- Strategy
Appendix – Data Sources, Abbreviations and Supporting Information
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- Abbreviations
- Methodology
Further Sources and Contacts
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- Trade associations
- Trade magazines
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