IT consulting services revenue to hit US$100bn mark by 2024

Consulting services revenue in Asia-Pacific (APAC) is growing at a record rate, and is expected to hit the US$100 billion mark in the next few years.

According to data and analytics company, GlobalData, enterprises in the APAC region continue to leverage IT consulting for better understanding, analysis, management, implementation and deployment of technologies for agile business strategy.

Against this backdrop, consulting services market in the region is set to grow at a compound annual growth rate (CAGR) of 2.8% between 2019 and 2024 to reach US$106.4 billion in 2024.

According to GlobalData's Market Opportunity Forecasts Model estimates, amongst the consulting services offerings, system design and integration will have the largest revenue market share (60.7%) by 2024.

In contrast, security consulting services will register the fastest growth rate (CAGR) of 3.9% during the forecast period.

GlobalData technology analyst Nagaveni Tantepudi says, "The presence of key delivery centers and innovation hubs of leading technology companies in countries such as China, India, Japan and Singapore positions the region as a favorable market for consulting services.

According to GlobalData, China and Japan will together account for 61.1% of the overall consulting services revenue in 2024.

Japan, with a market share of 28.8%, will be the second-largest country, followed by India with 8.5% market share in 2024.

Consulting services have emerged as a prominent offering category, as enterprises focus on the implementation of their digital transportation roadmap.

This has led to an increase in investment in cloud, analytics, AI and other emerging technologies, subsequently resulting in the increased demand for system design and integration and security consulting services, the analysts state.

Furthermore, growing demand for eCommerce has led to an increased requirement of hardware and software solutions in the IT and telecom industry, which in turn led to the expansion of the system design and integration market.

In addition to this, the emergence of local specialist vendors, coupled with the increasing presence of global technology vendors, will further propel the growth of system design and integration market, GlobalData states.

Tantepudi says, "Consulting services segment in the APAC region is forecast to witness healthy growth compared to other regions, majorly driven by economies such as China, Japan, India and Australia, with China remaining as the dominant market driving the growth.

"Despite the negative impact of the COVID-19 outbreak, APAC might be quicker to bounce back compared to other regions owing to agile delivery and support capabilities to the global enterprises.