The pace of digital transformation offers new opportunities for tech services companies that can adapt to change and attract the right talent. Our latest report identifies 6 Trends in Technology Services that could reshape the industry.
#1. AN UNRELENTING FOCUS ON CYBERSECURITY
Considering the vast scope of cybercrime, security may be the ultimate growth industry. The annual global cost of attacks is expected to hit $6 trillion by 2021 — doubling in just six years. To counter these threats, companies in every industry, along with many government agencies, could spend $1 trillion through 2021, providing growing revenue for companies that specialize in cyberprotection.
#2. CLOUD COMPUTING AND MOBILE DEVICES
Cloud software could represent almost half of all spending on applications by 2021 as tech users migrate to remote servers.3 Meanwhile, most people now connect to the cloud wirelessly through their smartphones and tablets — a trend that closely links cloud and mobile technologies. As more organizations seek cloud solutions to reduce their IT workloads, opportunities for cloud-focused tech services companies are likely to expand.
#3. DEPENDENCE ON HIGHLY SKILLED WORKERS
To bridge a growing skills gap, technology services companies are investing in workforce training and recruitment. Indeed, the question of where workers are located may now be less important than simply finding sufficient numbers of those with the necessary skills to meet rising demand at a time of growing labor shortages in most U.S. industries.
#4. GROWING DEMAND FOR CONSULTANTS
More than 700,000 global firms offer consulting services in a $250 billion industry. Demand for management consultants is projected to grow at an annual rate of almost 15% through 2024. But even in a booming industry, consulting firms will need to reinforce the value of their offerings as new competitors provide more flexible, data-driven, cloud-based, cross-platform solutions.⁷
#5. BIG DATA REQUIRING BIG ANALYSIS
Big-data and business-analytics firms may see a compound annual revenue growth rate of nearly 12% through 2022 as worldwide revenue reaches a projected $260 billion. But as companies in every industry look to leverage data across their operations, most will lack the expertise to succeed on their own, which will open up a major opportunity for a broad range of tech services companies.
#6. THE CHALLENGE OF DISRUPTIVE TECHNOLOGIES
AI is already affecting how work gets done in every industry, from healthcare to marketing to human resources consulting. Other disruptors, such as blockchain, quantum computing and Industry 4.0, have the potential to further transform technology. If the recent past provides any clues, the pace of digital transformation has the potential to create new opportunities for tech services companies that see what's coming and prepare themselves by finding, training and keeping workers who have the skills of tomorrow.