Chapter 4 | IT Services Spend Forecast in 2023

  • The Ultimate B2B Market Forcast for 2023
  • Chapter 1
    Global Forecast For IT Spend 2023
  • Chapter 2
    IT Spend Overview in 2023
  • Chapter 3
    IT Software Spend Forecast in 2023
  • Chapter 4
    IT Services Spend Forecast In 2023
  • Chapter 5
    IT Hardware Spend Forecast In 2023
  • Chapter 6
    IT Communications Spend Forecast In 2023
Chapter 4

IT Services Spend Forecast

Global IT Services Spend

HG projects that global spending on IT services will reach $1.6 trillion in 2023, about 43% of all IT spend. According to Gartner, much of the expansion in this segment is driven by Infrastructure-as-a-service (IaaS), which they project will grow by over 30% this year.

30% GROWTH

Gartner projects IaaS will grow by over 30% this year

GARTNER
“For the first time, price is a key driver of increased spend for cloud services segments, rather than just increased usage.”

We break Services down into nine categories and their subcategories:

9 Service Categories:

  • Application-Led Outsourcing
  • Business Process Outsourcing
  • Cloud Services
  • Consulting & System Integration
  • Digital Enterprise
  • Digital Enterprise
  • End User Services
  • Infrastructure-Led
  • Outsourcing
  • Internet of Things (IoT)
  • Network Services

Global IT Services Spend Forecast by Category

Sales & Marketing Software Spend by Global Region
Global IT Services Spend Forecast by Category
Source: HG Insights data
TOP 10

Global IT Services Vendors

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In the following pages, we will dig into five especially interesting subcategories:

  • Cloud Services
  • Business Process Outsourcing
  • IT Consulting
  • Internet of Things (IoT)
  • Infrastructure-Led Outsourcing

Services Subcategory: Cloud Services

The “as-a-service” model revolutionized the field of IT, with Cloud Services now making up nearly one-third of all IT services spend in 2023. The three most popular offerings are SaaS, IaaS and PaaS – however, it’s worth noting that these are not mutually exclusive, with many SMBs and mid-market businesses using more than one and most enterprise companies making use of all three.

The AMER region spends the most on Cloud Services, making up about 42.7% of all global spend.
APAC and EMEA account for 33.4% and 23.8%, respectively.

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Salesforce is widely credited as the first enterprise SaaS company in the world, having launched its cloud-based CRM software in 1999.

Global Cloud Services Subcategory Spend Forecast by Region

Source: HG Insights data
TOP 10

Cloud Service Vendors

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Services Subcategories

Services Subcategory: Business Process Outsourcing

Business Process Outsourcing Subcategory Spend Forecast By Region
Source: HG Insights data

INSIGHTS
HG projects total global spending on Business Process Outsourcing (BPO) will reach $98.7 billion in 2023, with 42.1% from AMER, 24.6% from EMEA and 33.3% from APAC. The largest subcategories are CRM BPO and Processing Services, on which buyers will spend $22.8 billion and $21.8 billion, respectively.

Services Subcategory: IT Consulting

Global IT Consulting Spend Forecast by Region
Source: HG Insights data

Services Subcategory: Internet of Things

Global IoT Subcategory Spend Forecast by Region
Source: HG Insights data

INSIGHTS
The Internet of Things is a growing ecosystem of physical items that are connected to the internet for a specific purpose. As this chart shows, four key areas of IoT are energy, factory, health, and transportation, but there are also industry-specific IoT applications. As the number of IoT devices increases, applications must be able to accommodate higher volume workloads.

HG forecasts that total global spend on IoT services will reach $70.8 billion in 2023 — 42.0% from AMER, 24.7% from EMEA and 33.2% from APAC.

TOP

IOT Vendors

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Services Subcategory: Infrastructure-Led Outsourcing

Global Infrastructure-Led Outsourcing Subcategory Spend Forecast by Region
Source: HG Insights data

INSIGHTS
The Infrastructure-Led Outsourcing subcategory is wide-ranging, including everything from infrastructure hosting and management to business continuity and hardware integration. HG data projects $175 billion in 2023 global spend in this category, the largest piece by far (56%) coming from Infrastructure Management.

TOP10

Top Infrastructure-Led
Outsourcing Vendors

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