Market Update th Edition June 2015 Edited by Robert Hucker ISBN Computer Services

Transcription

1 Market Update th Edition June 2015 Edited by Robert Hucker ISBN Computer Services

2 Foreword In today s competitive business environment, knowledge and understanding of your marketplace is essential. With over 30 years experience producing highly respected off-the-shelf publications, Key Note has built a reputation as the number one source of UK market information. Below are just a few of the comments our business partners and clients have made on Key Note s range of reports. The test of any marketing strategy and plan lies in the quality of information used, upon which marketing judgments and decisions are based. Quality is the key word here. The Key Note reports are an excellent source of such quality information, covering a wide variety of product sectors. The Chartered Institute of Marketing I regard Key Note as the number one provider of UK market research. The way Key Note content is packaged and presented is appealing and easy to understand and therefore a must for my taught course students. Its products are complemented by remarkably high levels of customer service. University of Cambridge, Judge Business School Key Note is one of the most dynamic and intuitive products the department subscribes to. It has also remained one of the most-used services for a number of years. The combination of market reports, linked to real company data, within one product, is particularly useful. The constant investment and desire to improve the service sets it aside from a number of other organisations and I look forward to working with them for many years to come. Jack Mears, Knowledge and Information Partner, Department for Business, Innovation and Skills Key Note is the Swiss Army knife of report platforms, incorporating both consumer and B2B research (not to mention Companies House data). It therefore has a comprehensive line-up of titles, all of which are frequently updated. I like the fact that the analysis within the reports is based on hard data, through a combination of in-house and external sources. As a result, using Key Note is a great way to keep up-to-speed on a variety of markets, sectors, products and brands and it s a great tool to have on hand for new business and strategy development. Jim Clark, Head of Insight, IPA Key Note Ltd 2015

3 Contents Contents Introduction & Definition 1 REPORT COVERAGE...1 MARKET SECTORS...2 Consulting Services...2 Implementation...2 Operation Management...2 Support Services Executive Summary 3 2. What s KEY in the Market? 4 KEY DRIVERS...4 MARKET TRENDS...4 Cyber Security...4 IT Budgets...5 ECONOMIC TRENDS...5 Table 2.1: UK Economic Trends (000, m, %, million and ), MARKET POSITION...7 Table 2.2: The UK Computer Services Market as a Proportion of the UK Computer Programming, Consultancy and Management Market by Value ( m and %), Figure 2.1: The UK Computer Services Market as a Proportion of the UK Computer Programming, Consultancy and Management Market by Value ( m), HOW ROBUST IS THE MARKET? Market Size, Segmentation & Forecasts 10 MARKET SIZE & SEGMENTATION...10 The Total Market...10 Table 3.1: The Total UK Computer Services Market by Value ( m), Figure 3.1: The Total UK Computer Services Market by Value ( m), FORECASTS...11 Future Trends...11 Software-Defined Data Centre...11 Key Note Ltd 2015

4 Contents Declining Reliance on Hardware...11 Future Economic Trends...12 Table 3.2: Economic Forecasts (000, % and million), Forecast Total Market...13 Table 3.3: The Total Forecast UK Computer Services Market by Value ( m), Figure 3.2: The Total Forecast UK Computer Services Market by Value ( m), MARKET GROWTH...14 Figure 3.3: Growth in the UK Computer Services Market by Value ( m), International Perspective 15 OVERVIEW...15 The US...15 Table 4.1: The Global Computer Services Market by Region by Value ( bn and %), Figure 4.1: The Global Computer Services Market by Region by Value Share (%), GLOBAL LEADERS...16 Table 4.2: Leading Global IT Services Vendors by Revenue, Strengths, Weaknesses, Opportunities & Threats 18 STRENGTHS...18 WEAKNESSES...18 OPPORTUNITIES...18 THREATS PESTEL 20 POLITICAL...20 EU Data Protection Regulation...20 Data Centre Climate Change Agreement...21 ECONOMIC...22 SME Engagement in Public Contracts...22 SOCIAL...22 Skills Shortage...22 Women in IT...23 TECHNOLOGICAL...24 Key Note Ltd 2015

5 Contents 7. Company Financials Further Sources 27 Publications...27 Government Publications...27 Key Note Research 28 The Key Note Range of Reports 29 Key Note Ltd 2015

6 Introduction & Definition Introduction & Definition REPORT COVERAGE This Key Note Market Update examines the UK computer services market. This sector is broadly defined as the provision of various IT services, covering IT design, consultancy, support and maintenance activities. IT outsourcing (ITO) services are also covered by the scope of this report. The majority of activities undertaken within the computer services sector are covered under the Standard Industrial Classification of Economic Activities 2007 (SIC 2007), under category 62 computer programming, consultancy and related activities. This category covers a range of activities across the various SIC subdivisions, including: computer programming activities 62.01/1 ready-made interactive leisure and entertainment software development 62.01/2 business and domestic software development computer consultancy activities computer facilities management activities other information technology and computer service activities. The computer services market, as defined by this report, also covers various activities not included within SIC category 62. Other relevant SIC categories are listed below; however, it is important to note that these codes also cover a wide range of unrelated activities installation of industrial machinery and equipment (includes the installation of communications equipment, process control equipment, and mainframe and similar hardware) electrical installation (including telecommunications and computer network wiring) 63.1 data processing, hosting and related activities; web portals 95.1 repair of computers and communication equipment. IT activities excluded from the scope of this report include those relating to the domestic sector; leisure/entertainment software; and the manufacture, marketing and supply of computer hardware. Activities relating to the hardware supply market are covered by Key Note s Computer Hardware Market Report (last published in November 2014). However, the supply of computer hardware or hardware consultancy services, when provided within the scope of computer services contracts, is included within this analysis. Key Note Ltd

7 Introduction & Definition Business process outsourcing (BPO) such as the provision of outsourced contact centres is also excluded from the scope of this report, although any computer services used in the support of BPO are included. Application service providers (ASPs), which provide various services via a Web browser or special-purpose client software, are also covered. MARKET SECTORS Consulting Services Consulting services encompass various activities and services across the areas of computer hardware and software, largely relating to the planning and design of new or modified IT systems. This can cover consulting across numerous aspects of the client s IT capabilities, from general IT, corporate strategy and best practice systems, through to business process management (BPM) design and integration, system architecture, product selection and long-term maintenance. Implementation Implementation covers the various services required for new and modified systems installation, including procurement, configuration, the installation itself, testing and project management. System building and installation tends to represent the most significant activity within the context of implementation. In order to keep both costs and disruption to the business at a minimum, clients often choose to integrate existing IT infrastructure with any new system. Also included within this sector is the provision of any bespoke software required in the implementation of a new IT system, in addition to any user training and education. Operation Management This sector relates to the provision of management services provided across a client s IT system. Activities can range from the provision of help desk services to network management, on-site systems management, facilities management, and disaster prevention and recovery services. For the most part, computer services companies can supply both specific, individual services and, more commonly, multiple services. Support Services This sector primarily concerns the provision of services to ensure the continuity of daily client IT operations. This includes technical support and long-term maintenance agreements across the areas of hardware, software, networking and cabling. Key Note Ltd

8 Executive Summary 1. Executive Summary The UK market for computer services is estimated to have grown by 7.8% in 2014 on the back of rising business investment in IT products and services, following ongoing economic growth and the resulting relaxation of corporate budgets. The computer services sector encompasses a wide range of activities, ranging from IT consultation, design and implementation to management, servicing and maintenance. Such services are essential across the UK economy, with major customers across central and local government; among the highly computerised financial, communications and retail sectors; and, increasingly, within non-traditional sectors such as manufacturing, as virtually all companies attempt to compete in an increasingly digital society. The rapid uptake of digital communications technology and services among consumers, business, organisations and the Government has ultimately represented one the key drivers in demand for computer services companies. With business-to-consumer (B2C) and business-to-business (B2B) services increasingly reliant on digital communication channels combined with the perception of IT as a major source of efficiency gains in the private and public sectors computer services are in increasingly high demand, both in the UK and overseas. Cloud-based services have represented a key growth area in recent years, particularly the software-as-a-service (SaaS) product. SaaS has proved massively popular, allowing client organisations access to office software, and similar applications, via a Web browser. An Saas subscription payment model can eliminate the need for expensive software licences and can provide greater efficiencies and flexibility, by eliminating the need for client organisations to perform updates and other maintenance themselves, and by enabling the addition or removal of users as and when necessary. Other cloud-based services, such as infrastructure-as-a-service (IaaS) and platform-as-as-service (PaaS) are also growing in popularity, as companies recognise the potential cost-savings in relation to reduced IT infrastructure, hardware and software that they themselves would otherwise be required to own and operate. With recovering economic conditions, combined with rising corporate IT expenditure expected over the next few years, the computer services market is forecast for extremely healthy growth in 2015 and Following on from this recovery, sector growth is expected to drop back slightly to more stable levels from 2017 onwards. Key Note Ltd