IT Services - UK - February 2019

OVERVIEW
What you need to know
Covered in this Report
EXECUTIVE SUMMARY
The market
Strong development
Figure 1: UK market for IT services, 2014-18
Diverse end use market
Figure 2: Segmentation of the IT services market, by end use industry, 2018
IT services activities
Figure 3: Segmentation of IT services, by activity, 2014-18
Consultancy
Figure 4: Segmentation of IT consultancy activity, 2018 (£ billion)
Other IT services and outsourcing
Figure 5: Segmentation of the IT Outsourcing and services sector, 2018 (£ billion)
Range of market drivers
Strong prospects
Figure 6: Forecast market for IT services, 2019-23
Companies and brands
A fragmented sector
What we think
ISSUES AND INSIGHTS
5G is just around the corner
The facts
The implications
Security issues intensifying
The facts
The implications
The Cloud
The facts
The implications
THE MARKET – WHAT YOU NEED TO KNOW
Strong growth
Brexit uncertainties are no deterrent
Continued major market drivers
MARKET SIZE
Strong growth continues
Figure 7: UK market for IT services, 2014-18
Sector inflation growth in 2018
Figure 8: Inflation impact in the IT services sector, 2014-18
Strong Q4 2018
Figure 9: Seasonal variation in the IT services market, 2018
MARKET SEGMENTATION
Industry end use
Figure 10: Segmentation of the IT services market, by end use industry, 2018
IT service activity
Figure 11: Segmentation of IT services, by activity, 2014-18
IT Consultancy
Figure 12: Segmentation of IT consultancy activity, 2018 (£ billion)
Other IT Services
Figure 13: Segmentation of the IT Outsourcing and services sector, 2018 (£ billion)
MARKET FORECAST
Strong prospects
Figure 14: Forecast market for IT services, 2019-23
The 5 G impact
The AI impact
Forecast market segmentation
Figure 15: Forecast segmentation of the IT services market, 2019-23
The IT service industry impact
THE IMPACT OF THE ECONOMY
GDP
Figure 16: GDP Overall quarterly development, Q1 2015-Q3 2018
Figure 17: GDP quarterly development, by sector, 2004-18
Figure 18: Forecast GDP development, 2018-2023
MARKET TRENDS
Blockchain technology
Augmented Reality and Virtual Reality
Artificial Intelligence
Internet of Things
Figure 19: Worldwide connected devices installed, 2015-17 actual and 2018-25 forecast
5G
Cloud Computing
Figure 20: The UK cloud computing market 2014-18
Figure 21: Proportion of UK businesses purchasing cloud computing services, 2017
Figure 22: Proportion of UK businesses using servers exclusively reserved at service providers, 2017
Figure 23: Proportion of UK businesses using shared servers at service providers, 2017
MARKET DRIVERS
Internet usage
Figure 24: Worldwide Internet usage, by region, 2000-18 (million)
Figure 25: Proportion of UK businesses with Internet access, by size of company, 2017
Website use by companies
Figure 26: Proportion of UK businesses with websites, by size of business, 2017
Business purchasing over the internet
Figure 27: Proportion of UK businesses making e-commerce purchases, by size of business, 2017
Figure 28: Proportion of UK businesses making e-commerce purchases, by industry, 2017
Business selling over the Internet
Figure 29: Proportion of UK businesses making website sales, by size of business, 2017
Figure 30: Proportion of UK businesses making EDI sales, by size of business, 2017
Figure 31: Proportion of UK businesses making e-commerce sales, by industry, 2017
Security
Figure 32: UK market for computer security products and services, 2014-18
Figure 33: Segmentation of the computer security market, by end use sector, 2018 (£ million)
COMPANIES AND BRANDS – WHAT YOU NEED TO KNOW
International service providers for enterprises
Acquisition, a key strategy
Independence and scale are reassuring
INDUSTRY STRUCTURE
Overview
IT consultancy
Figure 34: Development of the IT consultancy sector, 2014-18
Figure 35: Analysis of the financial structure of the IT consultancy sector, 2018 (number)
IT facilities management
Figure 36: Development of the IT facilities management sector, 2014-18
Figure 37: Analysis of the financial structure of the IT facilities management sector, 2018 (number)
IT other services
Figure 38: Development of the IT other services sector, 2014-18
Figure 39: Analysis of the financial structure of the IT other services sector, 2018 (number)
COMPETITIVE STRATEGIES
Acquisition of skills and market share
Acquisitions for Varied reasons
The importance of Partnerships
The Cloud Target
COMPANY PROFILES
Accenture
Activity
Performance
Figure 40: Financial summary of Accenture (UK), 2013-17 (£ 000)
Figure 41: Turnover analysis of Accenture (UK), 2017 (£000)
Strategy
Cap Gemini
Activity
Performance
Figure 42: Financial summary of Capgemini UK, 2013-17 (£ 000)
Figure 43: Turnover segmentation of Cap Gemini, 9 months of 2018
Strategy
DXC Technology
Activity
Performance
Figure 44: Geographic analysis of DXC Technology Revenue, 2018
Strategy
FDM Group (Holdings)
Activity
Performance
Figure 45: Financial summary of FDM Group (Holdings), 2013-17 (£ million)
Strategy
IBM
Activity
Performance
Figure 46: Financial analysis of IBM United Kingdom, 2013-17 (£ million)
Strategy
Wipro
Activity
Performance
Strategy
APPENDIX – DATA SOURCES, ABBREVIATIONS AND SUPPORTING INFORMATION
Abbreviations
Methodology
FURTHER SOURCES AND CONTACTS
Trade associations
Trade magazines