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
“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:
Global IT Services Vendors
In the following pages, we will dig into five especially interesting subcategories:
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.
Cloud Service Vendors
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.
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
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.
Top Infrastructure-Led
Outsourcing Vendors
Chapter 5
IT Hardware Spend Forecast
HG has been a strategy thought leader in technology intelligence for over a decade, developing solutions enabling global businesses to out-market, out-sell and outgrow their competition.
