The global IT and business services market is expected to hit the US$1.1 trillion (AU$1.52 trillion) mark this year after 3.4 percent year over year growth, according to new research from IDC.
This bump in growth, as predicted by IDC in April, comes amid the market’s recovery after declining 1.16 percent in 2020.
IDC said that the global market will continue to grow apace seeing between 3.8 and 4.0 percent growth through 2023 and 2024.
Mid-term and long-term market growth expectations have also increased slightly up to 4.3 percent from 4.1 percent, due mainly to government-led digitalisation programs.
Australia’s growth rate is slightly lower than the global average, being a more mature market. It sits in the 2 to 3 percent range, alongside other similar APAC markets such as Japan and South Korea.
Some markets are seeing a high growth rate in the near term as they look to catch up on 2020’s lag, IDC said, such as China’s expected 11 percent growth rate for 2021. However, this will settle quickly back into a globally aligned growth rate in 2022.
In terms of other global regions, the Americas market is forecast to grow by 2.4 percent in 2021 and Europe at above 3 percent. While recovery is slower in the Middle East and Africa, it is expected to hit 6.5 percent YoY growth by 2025.
"The need for digital transformation and the demographic squeeze on (the right) talent pool, expedited by the pandemic, global supply chain disruptions, and lose monetary policies, have created the perfect push and pull for enterprise buyers; therefore, our long-term growth outlook for the IT and business services market remains sanguine," IDC global services markets and trends research director Xiao-Fei Zhang said.
"Additionally, we are seeing large services providers also making big bets, both organic and inorganically, on the operations and product side, which enjoys more than twice the market growth of the existing IT/business services market, according to our latest Digital Engineering & Operational Technology Tracker's latest figures."