The digital services sector in the UK is rapidly evolving due to technological advancements and policy frameworks that are shaping the region’s digital landscape. There has been significant growth in the adoption of digital services across various sectors, driven by increased market competition from digital natives and changing consumer preferences. The UK government is also prioritizing digital transformation projects to enhance service delivery while addressing cybersecurity threats and regulatory compliance. This adoption aims to forge a digital ecosystem and foster innovation, shaping the future of digital services in the UK.
Both demand- and supply-side trends are covered in Avasant’s United Kingdom (UK) Digital Services 2024 Market Insights™ and United Kingdom (UK) Digital Services 2024 RadarView™, respectively. These reports present a comprehensive study of digital service providers in the UK region, including top trends, analysis, and recommendations. The reports also closely examine the leaders, innovators, disruptors, and challengers in this market.
Avasant evaluated 46 providers across three dimensions: practice maturity, investments and innovation, and ecosystem development. Of the 46 providers, we recognized 27 that brought the most value to the market during the past 12 months.
The report recognizes service providers in four categories:
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- Leaders: Accenture, Capgemini, Cognizant, HCLTech, IBM, Infosys, TCS, and Wipro
- Innovators: Atos, CGI, DXC, NTT DATA, Tech Mahindra, and UST
- Disruptors: Capita, Fujitsu, Kainos, LTIMindtree, Sopra Steria, Virtusa, and Zensar
- Challengers: Coforge, Computacenter, EXL, Hitachi Digital Services, Unisys, and Version 1
Figure 1 below from the full report illustrates these categories:
“From healthcare to retail, and notably in water utilities, the integration of technologies is pivotal in addressing contemporary challenges and meeting future demands for the UK digital services market,” said Shobhit Patnaik, Avasant partner. “Embracing cross-industry collaboration will be crucial for sustained growth and resilience.”
The full report provides a number of findings, including the following:
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- NHS is addressing digitalization challenges to enhance interoperability, user education, and cybersecurity amidst limited funding and modernization hurdles. The NHS is using digital innovations to tackle these challenges and transform UK healthcare.
- The UK’s affordable housing issue is being addressed through PropTech and cutting-edge technologies to enhance customer experiences and efficiency. In 2024, AI, VR/AR, IoT, blockchain, and smart home tech will revolutionize real estate despite challenges.
- Digital natives, disrupting the market with new services, are driving the transformation of UK enterprises, including high-street banks and retailers. Traditional firms are embracing technologies to meet changing consumer needs and stay competitive.
- Regulatory efforts in the UK aim to bring citizen-friendly policies, presenting challenges and opportunities for tech firms to innovate in ensuring user privacy. The new bills aim to improve cybersecurity while Ofcom expands its team to enforce these protections.
- The UK is shifting towards clean energy, with government and private sector collaboration to expand wind and solar power by 2030, emphasizing green tech and ESG goals and accelerating the shift to net zero.
- UK’s utility industry modernizes infrastructure and addresses sewage spillages, leveraging smart water technologies to enhance efficiency and safety standards.
“Amidst evolving legislation post-Brexit and new regulations, the UK’s digital services are adapting to ensure compliance and enhance productivity,” said Payel Maity, senior analyst at Avasant. “The UK government is focusing on digital transformation for enhanced consumer experience and innovative service delivery across all sectors.”
The United Kingdom (UK) Digital Services 2024 RadarView™ also features detailed profiles of 27 service providers, along with their solutions, offerings, and experience in assisting UK enterprises in digital transformation.
This Research Byte is a brief overview of Avasant’s United Kingdom (UK) Digital Services 2024 Market Insights™ and United Kingdom (UK) Digital Services 2024 RadarView™ (click for pricing).