Skip to main content

Cloud Professional Services Revenue will Reach $59B

Hybrid IT environments will fuel the growing demand for experienced digital transformation talent that's currently in short supply. In particular, CIOs and IT managers have filled the void by engaging a variety of consulting firms to help them meet their near-term cloud computing specialist requirements.

That being said, the cloud professional services market is now forecast to grow at a low-double-digit CAGR through 2019, reaching $59 billion in revenue, according to the latest Technology Business Research (TBR) forecast.

Accelerated demand for managed services will continue to increase opportunities for cloud professional services vendors, and the leaders will continue capitalizing on longer-term, ongoing consulting opportunities, relying less on software applications development and maintenance.

Enterprise customers seek to build best-fit, multi-cloud environments, but increasing cloud security concerns could prevent these organizations from adopting and implementing cloud solutions in their IT environments without skilled third-party assistance.

Demand for Digital Transformation Talent

"There is an interesting dynamic in the cloud professional services market. Leading vendors in the space will further their dominance with additional market share over the next five years," said Cassandra Mooshian, cloud analyst at TBR.

Typically, the inverse is true, particularly in markets such as cloud computing where competition is intense. However, there are corners of this market -- such as the brokerage and integration space -- which is disrupting other parts of the overall cloud professional services market.

According to the TBR assessment, IBM, HP and Accenture remain the majority leaders in the market as a result of their business model transformations and go-to-market shifts. They're already introducing their large customer bases to the emerging cloud computing market.

Smaller, regional vendors such as Capgemini and T-Systems -- and lower-cost vendors based in India, such as Wipro and Cognizant -- continue to address the custom cloud consulting needs for highly regulated local markets and the more cost-conscious customers.

In summary, the resulting report from the TBR study offers a forward-looking view of upcoming changes in the cloud professional services market and illuminates trends and opportunities for vendors within the digital business transformation space -- to better target a specific category or niche and thereby grow their revenue.

Popular posts from this blog

Digital Talent Demand Exceeds Supply in Asia-Pac

Even the savviest CEO's desire for a digital transformation advantage has to face the global market reality -- there simply isn't enough skilled and experienced talent available to meet demand. According to the latest market study by IDC, around 60-80 percent of Asia-Pacific (AP) organizations find it "difficult" or "extremely difficult" to fill many IT roles -- including cybersecurity, software development, and data insight professionals. Major consequences of the skills shortage are increased workload on remaining digital business and IT employees, increased security risks, and loss of "hard-to-replace" critical transformation knowledge. Digital Business Talent Market Development Although big tech companies' layoffs are making headlines, they are not representative of the overall global marketplace. Ongoing difficulty to fill key practitioner vacancies is still among the top issues faced by leaders across industries. "Skills are difficul

Mobile Device Market Still Awaiting Recovery

The mobile devices market has experienced three years of unpredictable demand. The global pandemic, geopolitical pressures, supply chain issues, and macroeconomic headwinds have hindered the sector's consistent growth potential. This extremely challenging environment has dramatically affected both demand and supply chains. It has led to subsequent inflationary pressures, leading to a worsening global cost of living crisis suppressing growth and confidence in the sector. In tandem, mobile device industry stakeholders have become more cautious triggering market uncertainties. Mobile Device Market Development Operating under such a backdrop, the development of mobile device ecosystems and vendor landscapes have been impacted severely. Many of these market pressures persisted throughout 2022 and now into 2023, borne chiefly by the smartphone market. According to the latest worldwide market study by ABI Research, worldwide smartphone shipments in 2022 declined 9.6 percent Year-over-Year

Global Digital Business and IT Consulting Outlook

Across the globe, CEOs and their leadership teams continue to seek information and guidance about planned Digital Transformation initiatives and the most effective enterprise organization change management practices. Worldwide IT and Business Services revenue will grow from $1.13 trillion in 2022 to $1.2 trillion in 2023 -- that's a 5.7 percent year-over-year growth, according to the latest market study by International Data Corporation (IDC). The mid-term to long-term outlook for the market has also increased -- the five-year CAGR is forecast at 5.2 percent, compared to the previous 4.9 percent. Digital Sevices & Consulting Market Development IDC has raised the growth projection despite a weak economic outlook, because of vendor performances across 2022, growth indicators from adjacent markets, increased government funding, and inflation impacts. The actual 2022 market growth was 6.7 percent (in constant currency), which was 87 basis points higher than forecast last year, alth