In this quarterly report, Avasant provides key information on IT and apps managed services provider trends. The report covers key information on the IT services industry and the provider ecosystem. It covers the service provider facts and figures (including revenue and resource trends) and executive sentiment from the service provider community. The report covers trends across a gamut of IT services, including but not limited to IT infrastructure, application, and end-user services. The geographic coverage for the report is global. It builds on insights gathered through ongoing market research, data collection, and proprietary databases. It includes market data from providers accessed through multiple sources such as public disclosures, market interactions, and deals data.
This report also highlights the key market trends and Avasant’s viewpoint on the industry’s future direction.
Key service provider trends:
-
- Aggregate revenue increased quarter on quarter (QOQ) primarily due to continued focus on AI initiatives by clients and providers.
- While Accenture, IBM, and TCS saw margin expansion, every other player in the industry faced a contraction. Large deal ramp-ups, investments, and wage hikes drive the decline in operating margins for most of the providers.
- Macro uncertainty delays decision-making, but AI and digital continue to anchor client priorities.
- Providers are selectively expanding their workforce to fill gaps in specialized skills like advanced data and AI.