IT Services and Business Services revenues are expected to cross $1 trillion for the first time in 2018, says IDC.
Worldwide services spending will be less than $900 billion in 2016 and will be near $1.1 trillion by 2020.
United States is expected to generate the largest percentage of services spending throughout the forecast period, followed by Western Europe. The fastest growing regions will be Latin America, then the Middle East and Africa (MEA). Among the major global regions, Asia/Pacific (including Japan) is forecast to have the highest overall growth rate.
With more than $100 million worth of spending each this year, the largest services markets will be Key Horizontal Business Process Outsourcing (BPO) and Systems Integration Services, which will also generate the largest revenue pools over the 2016-2020 forecast period. Business Consulting Services is forecast to outpace both markets in terms of growth.
Cloud-related service spending is expected to reach more than $98 billion by the end of 2016, said IDC.
“As digital transformation involves significant changes to people and business processes as well as technology, most buyers will engage an outside services firm to help them along their transformation journey,” said Rebecca Segal, group vice president, Worldwide Services at IDC.
