Analyst IDC has forecast worldwide spending on IT and business services to increase through the end of 2023, even as the global recession looks set to stabilize. With a lack of talented developers to hire for businesses, IT services companies are one of the ways to access those skills.
IDC expects spending in this sector to grow 5.7% in 2022 and 5.2% in 2023, and projects a 5-year compound annual growth rate (CAGR) of 5.2. % as of today, compared with the previous forecast of 4.9% in April 2022.
The analyst said it still “cautious optimism“for this market segment due to better-than-expected results from vendors in the first two quarters of 2022 – as seen in revenue, bookings and pipelines – as well as combined workplace growth and cloud usage caused by the pandemic.
“While the economic conditions of the world’s major economies have worsened over the past few months, with revenue, bookings and other leading indicators of major suppliers,” said Xiao-Fei. service level, the worldwide service market is likely to continue on its current growth trajectory,” said Zhang, program manager for IDC’s Global Service Monitor program.
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However, that trend does not mean that IT services companies will easily retain talent: “Also, the real threat to providers may come from the supply side: with book on invoice over 1.1 or 1.15, plus 25%, and utilization rate increased by almost 90%, something a must have.The cooler economy can really help suppliers. convert bookings into revenue faster by relaxing the labor market.”
IDC said apps remain a key growth driver for managed services, as the pandemic added billions of digital users globally almost overnight, “draining the talent pool.” software development available worldwide”. Infrastructure and workplace outsourcing market outlook has also been revised up moderately as cloud and hybrid workplaces continue to drive strong growth.
Analyst Gartner said last week Worldwide corporate IT spending is ‘recession resistant’although growth in 2022 is flat from 2021. Gartner forecasts the strongest growth in IT spending in software, including investments in the cloud.
IDC predicts some projects will be delayed or paused indefinitely. While this will have a negative impact on business consulting, they still expect spending in this area to grow between 6% and 8% in the coming years. It also thinks managed services will be more protected from the recession because they are critical services, while it expects some growth for application management, workplace outsourcing. and infrastructure and support services.
Milan Kalal, Senior Research Director at IDC European Services Group, said: “The European services market has weathered the disruption storm exceptionally well so far, leading to solid market performance results. in the first half of 2022”. “Demand has been driven by the acceleration of digitization efforts within European organizations as well as their desire to transition to the cloud continuously.”
