III. Industry Analysis
According to Gartner, worldwide IT service spending is about $3.8 trillion annually. In the United States, IT consulting revenue is expected to reach $354.2 billion. The output of US computer and data processing services, an indicator of demand for information technology services, is forecast to grow at a moderate rate in the next two years.The IT consulting industry is forecast to experience strong growth in the next five years, albeit at a slower rate than in the 1990s, when the personal computer revolutionized computing technology. Industry revenue will primarily be driven by rising corporate profit, which precipitates increased private investment in computers and software. As a result, IT consultants are forecast to see an uptick in demand for industry services, as firms require computer application and program design and systems integration assistance. Mobile technologies are also expected to help boost industry revenue as firms invest in new technologies that allow consumers to more effectively browse websites through new devices such as smartphones and tablets. Overall, the industry is projected to grow at an average annual rate of 4.0% over the next five years.
Further, as US companies reorganize and expand in the wake of the recession, IT consultants are projected to experience increased demand Expanding firms will seek the assistance of IT consultants to improve operational efficiency through system upgrades and integration. Additionally, demand from private companies, which comprise a small but significant proportion of the industry’s tech support revenue, is expected to pick up, with private investment in computers and software forecast to grow an annualized 5.1% over the five-year period.