As an IT services company, staying competitive and meeting the evolving needs of businesses is essential. To help you optimize your offerings and align with industry trends, we have compiled key statistics across various areas.
From cybersecurity to software development, business goals, marketing, and innovation, these trends provide valuable insights into the biggest challenges and opportunities facing the IT industry in 2023.
Top 2024 Trends
First up, the wave of IT trends in 2024. Stay ahead of the game with these key takeaways:
Generative AI as growth catalyst: IT service companies should focus on understanding how to effectively deploy cognitive tools such as AI and machine learning. Rather than replace people, generative AI can arm employees with tools that enhance their creativity, knowledge, and productivity. (Deloitte)
Providing solutions for AI-powered customers: In 2024, your customers may not even be human. IT service companies should know how to understand and serve the unique needs of machine customers. (Gartner)
Recognizing and responding to synthetic media: Leading firms are implementing policies and technologies to identify harmful content. IT service companies should implement their own policies, and train both their employees and their clients to recognize and respond to deepfakes, advanced phishing techniques, and misinformation. (Deloitte)
Empowering engineers: Retaining top tech talent is more important than ever. IT service companies should invest more in the engineer experience and focus on improved developer productivity and satisfaction. (Deloitte)
Industry cloud interest: Industry cloud platforms (ICPs) emerged as a key trend in 2023, and will continue into 2024. IT service companies should understand how ICPs significantly accelerate cloud adoption and deliver value-added capabilities to their clients. (Gartner)
IT Service Stats
Delivering exceptional IT services is at the heart of your business. To optimize your offerings and stay in sync with industry trends, the following stats will provide valuable insights across various domains.
Cyber Security Services
In 2021, 64% of IT service providers reported an increase in cyberattacks targeting their clients, emphasizing the critical need for enhanced cybersecurity defenses. (Datto)
In 2022, the average cost of a data breach has reached a record high of US$4.35 million, according to the 2022 cost of a data breach report by IBM and the Ponemon Institute. However, many experts estimate that average costs could reach $5 million in 2023. (Upguard)
By 2025, cybercrime damages will cost the world $10.5 trillion annually, putting immense pressure on IT service providers to strengthen their security offerings and protect their clients' sensitive data. (Cybersecurity Ventures)
17% of cyber attacks target vulnerabilities in web applications, with 98% of web applications being vulnerable to attacks. Web applications are a prime target for cyber attacks, so it's crucial to secure them and regularly update their code to prevent vulnerabilities. (Positive Technologies)
Ransomware breaches have seen a 13% increase in the last 5 years, and there were 623.3 million ransomware attacks worldwide in 2022. (Verizon, SonicWall)
Data breaches and cyber incidents come with significant financial costs, estimated at $6 trillion by 2021. (Cybersecurity Ventures)
Software Development Services
Agile projects have a 64% success rate, while projects under the competing waterfall methodology have a 49% success rate. Agile projects are nearly 1.5 times more successful than waterfall projects. (Zippia)
90% of IT leaders believe that increasing the use of AIOps (Artificial Intelligence for IT Operations) within DevOps and security projects is crucial for scaling up DevSecOps. AIOps can help automate and streamline processes, improving efficiency and effectiveness. (CIOs and senior DevOps managers survey)
According to a study by Geneca, 75% of business or IT executives feel that their software projects are usually doomed from the initial phase. This highlights the importance of addressing project challenges early on to increase the chances of success. (LinkedIn)
71% of organizations use Agile approaches to software development, indicating its widespread adoption and effectiveness in delivering high-quality software. (VersionOne)
Organizations that have implemented DevOps practices experience 22% less time on unplanned work and rework, leading to improved productivity and efficiency. (Puppet)
94% of enterprises use the cloud, with 83% of enterprise workloads expected to be in the cloud by 2023. Cloud adoption offers scalability, cost savings, and increased flexibility. (Flexera)
Mobile apps are projected to generate over $935 billion in revenue by 2023, highlighting the immense market potential for businesses investing in mobile app development. (Statista)
Infrastructure Services
The global infrastructure as a service (IaaS) market is projected to reach $101.3 billion by 2023, with a compound annual growth rate (CAGR) of 29.0%. (MarketsandMarkets)
83% of IT decision-makers globally consider infrastructure and operations (I&O) automation as essential or very important for their businesses. (Statista)
By 2025, 40% of enterprises will have implemented a "cloud-first but on-premises" strategy, utilizing infrastructure services that combine public cloud resources with on-premises infrastructure. (Gartner)
Managed IT Services
The global managed IT services market will reach $319.5 billion by 2028, driven by increasing digitalization and the need for efficient IT management. (Grand View Research)
71% of organizations outsource their IT functions to managed service providers to access specialized skills, reduce costs, and improve overall IT performance. (Deloitte)
Outsourcing IT support can result in cost savings of up to 40-60% for businesses, compared to maintaining an in-house IT team. These savings can be redirected toward core business activities and growth initiatives. (Deloitte)
MSPs that implement Privileged Access Management (PAM) solutions report an average reduction of 80% in the risk of insider threats. (CyberArk)
The adoption of BYOD (Bring Your Own Device) policies can lead to annual cost savings of up to $350 for companies, prompting a growing number of businesses to rely on managed IT services to manage and monitor their devices. (Fortune Business Insights)
80% of organizations prioritize securing high-value apps like ServiceNow, AWS, Azure, GCP, and Salesforce, creating opportunities for MSPs to offer specialized security solutions. (CyberArk)
Service Innovation and Research
70% of companies are estimated to employ hybrid or multi-cloud management technologies, tools, and processes, allowing for efficient and flexible management of their cloud infrastructure. IT service companies should stay updated with the latest trends and technologies to effectively support their clients' businesses. (Mckinsey)
5G networks deliver network speeds approximately ten times faster than 4G LTE networks, with expectations of speeds up to 100 times faster and 40 times lower latency, enabling faster and more responsive connectivity. (Mckinsey)
By 2024, over 50% of user interactions will be augmented by AI-driven speech, written word, or computer-vision algorithms, enhancing user experiences and increasing efficiency in various applications. (Mckinsey)
By 2023, it is estimated that 75% of enterprise-generated data will be processed at the edge rather than in traditional data centers, enabling faster data processing, reduced latency, and enhanced real-time insights. (Gartner)
By 2025, it is projected that there will be over 30 billion connected IoT devices worldwide, driving digital transformation across industries and creating opportunities for IT service providers to offer IoT solutions and services. (Statista)
Business Goals Stats
To achieve your business goals, it is essential to have a clear understanding of industry benchmarks, financial performance, and the skills required to thrive. This section provides the stats you need to align your strategies and ensure success.
Financial Performance
Worldwide IT spending is projected to reach $4.6 trillion in 2023, with positive growth expected in all regions, indicating a robust market for IT service companies. (Gartner)
IT service companies can expect a significant return on investment (ROI) in enterprises, with an average ROI of approximately 42% in 2020. (Gartner).
Downtime in the IT industry costs around $5,600 per minute, resulting in potential revenue losses ranging from $145,000 to $450,000 per hour, depending on the company's size. (SolarWinds)
The cybersecurity industry is estimated to grow to $198bn in 2025, indicating a rising demand for IT service providers to combat increasing cybercrime and address skills shortages, with AI playing a crucial role in threat mitigation. (InvestmentMonitor)
The managed services market is also expected to have a promising development in the upcoming years, with the market projected to exceed 300 billion U.S. dollars in 2027. (Statista)
Cloud computing is a strongly growing segment, with end-user spending expected to reach nearly 500 billion U.S. dollars in 2022. Enterprise spending on cloud infrastructure services amounted to 178 billion U. S. dollars in 2021, registering an increase of 37 percent compared to the previous year. (Statista)
The spending for IT Services is estimated at a 7.9% growth rate in 2023 (TechTarget)
IT Skills and Workforce
Cloud computing, cybersecurity, AI, and machine learning are top investment areas for IT leaders, with 55% planning to train existing staff to bridge skill gaps. (Skillsoft)
While the percentage of IT leaders reporting skills gap concerns decreased by 10% from 2021 to 2022, most IT leaders still consider skills gaps as posing a medium to high-security risk, emphasizing the importance of having skilled professionals in the field. (Skillsoft)
57% of women in tech experienced burnout during the COVID-19 pandemic, emphasizing the importance of supporting women's well-being in the industry. (Techfunnel)
The tech industry has the highest turnover rate of any sector, with rates ranging from 13.2% to 18.3%, according to LinkedIn and Xpert HR. (LinkedIn)
Employee turnover costs around 33% of an employee's salary and takes approximately 43 days to hire a new software developer, amounting to $33,251 in expenses. (LinkedIn)
Career growth, professional development, and compensation are the most important factors influencing tech employees to switch or quit their jobs, according to ICONIC's survey. (LinkedIn)
Customer Support
Customer support is critical for IT service companies, as 71% of customers anticipate assistance within five minutes. Ensure efficient and responsive support to meet their expectations. (Zendesk)
92% of customers say that they would stop purchasing from a company after three or fewer negative customer service experiences, emphasizing the importance of providing excellent support to retain customers. (HubSpot)
67% of customers expect a self-service option for handling their support issues, such as knowledge bases or online FAQs. Providing self-service options can improve customer satisfaction and reduce support costs. (SuperOffice)
IT Service Goal Management
By implementing key performance indicators (KPIs), IT services companies can achieve a 10% boost in decision-making efficiency and 9% enhancements in profitability, revenue growth, customer acquisition, and customer satisfaction. (Forbes)
Over 70% of senior leaders recognize digital technology as integral to revenue achievement, product development, customer engagement, and advancing strategic operational processes. This highlights the importance of IT-business alignment in driving business success and leveraging technology for competitive advantage. (TechTarget)
75% of IT leaders believe that clearly defined and measurable Key Performance Indicators (KPIs) are essential for IT service goal management. Having well-defined KPIs enables organizations to track progress, evaluate performance, and make data-driven decisions to drive continuous improvement. (Gartner)
At least 10% of IT spending is not beneficial to IT business goals, emphasizing the importance of aligning IT with business. (BMC)
Marketing Stats
Effective marketing strategies can amplify your company's visibility and attract valuable leads. Stay ahead of the game with these marketing stats, covering website and app performance, digital marketing, e-commerce, and innovation.
Website Performance
For IT services companies, user experience is greatly influenced by page load times, as highlighted by Google Page Speed Insights. A substantial 53% of users abandon sites that exceed a three-second load time. (MarketingDive)
Mobile responsiveness is essential for IT services companies as it directly impacts conversion rates. A staggering 57% of users won't endorse a business that has a poorly designed mobile site. (Instabug)
Digital Marketing
Conversion rates vary across channels, with organic search (SEO) showing an average rate of 4.3%, presenting an opportunity for growth, while social media typically averages around 1.9%, requiring targeted strategies to enhance performance. (Adobe)
Embracing automation in marketing processes can save IT service companies a staggering 68% of their time on repetitive tasks, leading to higher productivity and focus on strategic initiatives, according to Ascend2. (LinkedIn)
By automating lead generation and nurturing processes, IT service companies can generate 50% more sales-ready leads at a 33% lower cost, ensuring a higher return on investment, according to data from Forrester. (LinkedIn)
Automation enables IT service companies to deliver personalized messages and follow-ups to customers, resulting in a remarkable 74% increase in customer engagement rates, according to Econsultancy. (LinkedIn)
Search advertising for tech-related industries has an average CTR of 2.09%. Investing in search advertising can yield higher engagement and better results for IT service providers. (WordStream)
Webinars have an average attendance rate of 40-50% of registered participants. Hosting webinars can be a highly engaging and effective method for IT service providers to showcase their expertise, generate leads, and engage their target audience. (ON24)
Video content marketing can increase organic search traffic by 157%. IT service providers can leverage video marketing to enhance their online visibility, engage users, and drive more traffic to their websites. (LinkedIn)
Key Statistics Takeaways for Your IT Service
The IT industry is experiencing significant trends in 2023 that will shape the future of IT service providers, with cybersecurity as a top priority following the rise in frequency and cost of cyberattacks. Companies should invest in robust cybersecurity measures to protect sensitive data. Additionally, embracing emerging digital transformations, such as AI and blockchain, can enhance efficiency and growth.
When it comes to business goals, understanding financial performance metrics and aligning IT strategies accordingly is crucial. IT spending is projected to grow, presenting opportunities for IT service companies. Bridging the skills gap and addressing employee turnover is also essential for success in the IT industry.
In terms of marketing, optimizing website performance and leveraging digital marketing channels like SEO and social media can attract valuable leads. Embracing automation and personalization can save time and improve customer engagement.
To stay ahead of these trends and make informed decisions for your IT company, schedule a call with us today and access tailored marketing solutions for your IT services company.
Enhance your online presence, generate leads, and reach a wider audience through website design, SEO optimization, content creation, and social media management. Stay ahead in the dynamic IT industry and drive success with valuable insights and strategies.
