Fast track Growth

To use Information Technology system in the best possible manner, consultancy services have been set up which primarily focus on businesses in order to help them achieve their aim and objectives. The industry includes services such as writing, testing and supporting custom software, planning and designing integrated hardware as well software to combine communication. Sometimes, apart from the advisory these consultancy firms offer, they directly take over certain business activities or sectors concerning IT tasks, which is referred to as outsourcing and is becoming an increasingly adopted trend by many of the larger business organizations. This four tier system under the IT industry takes form of professional services firms, which require heavy fees in return of professional workforce, staffing firms that temporarily give businesses skilled people for the performance of a particular task, independent consultants who are self-employed and Information Technology security consultants. With increased use of technology and telecommunication services and the need of businesses to remain flexible and responsive to the changing environment, has allowed IT consulting and services industry to grow and expand. Reasons why such services are acquired include businesses to take external advice, consultants specialized advice, either obtain temporary help for a specific project or outsource all or partially its IT activities. In 2014, it was analyzed the industry had an annual revenue of $363 billion and annual growth rate of 4.1% over a period from 2009-2014.

According to the research of Harvard Business School, it has found out that the industry will continue to reach new heights of expansion. By the end of this decade, it is expected that at least 60% of the transactions will be computer to computer, which will speed up the transactions in such a way that from automatic placement of orders to suppliers to the delivery of finished goods to consumers, all will be done with a direct supply chain management. Moreover, the help it provides to most of the businesses, for example, Boston Consulting Group and McKinsey have developed a new framework, which is designed to assist management in running business operations and handling problems. This is also a significant factor contributing to its success since it has become a crutch to the large corporations. The use of IT services such that in order to bring changes in structure, organizational culture, employees, process and leadership aid the element of agility among the organization. 

Gartner sets the IT services growth rate at a nominal value of 2.2 percent for this year, but predicts that pace will quicken to 4.6 percent in 2014, and 5.2% in 2015 and 2016, respectively. On the other hand, IDC has forecasted that globally the IT market will grow at annual rate of 4.1% until 2017. However, Accenture-one of the IT consulting businesses has seen its revenue to fall by 2% in US dollars in May, as compared to last year at the same date. Also there is a drop in demand for its enterprise resource planning services. But many other companies offering technology advisory services and systems integration don’t seem to be affected that way and continue to follow the growth trend like the entire industry altogether.