The global IT services market holds substantial opportunities for industry players due to increasing IT spending in the retail, healthcare, and transportation sectors. The increasing global demand for systems, services, software, and rising IT spending by governments are likely to boost the IT services market. The industry is highly associated with economic cycles as IT services are project-based and often represent discretionary spending. Apart from the conventional factors, the growing need to push companies to outsource their IT requirements is also predicted to spur the growth prospects of the IT services providers.
Moreover, the relative growth in tech-savvy consumers in the IT sector is forcing technology companies to consider unconventional and innovative ways to enhance their growth opportunities. In this technology-driven space, leading organizations are relying on innovations in their product offerings to improve customer satisfaction and increase the overall profitability. Although the IT services space is witnessing incremental growth, owing to the presence of a considerable number of services providers, several factors may influence the growth of the IT services provider. Wth the average company spending between 4% and 6% of its revenue on IT, the need for proper supplier governance and control measures has become increasingly critical to the enterprise. Moreover, as the trend continues, many large enterprise organizations have increased dependencies on external suppliers. This is where vendor management best practices come into play. Organizations in the IT industry must leverage vendor management best practices to reduce cost and better corporate compliance.