Global Software Consulting Market Size, Share & Industry Trends Analysis Report By Enterprise Size, By Vertical, By Application (Enterprise Solutions, Migration & Maintenance Services & Others), By Regional Outlook and Forecast, 2021 - 2027
発行: KBV Research
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List of Figures
The Global Software Consulting Market size is expected to reach $458.5 billion by 2027, rising at a market growth of 12.1% CAGR during the forecast period.
Software consulting is the practice of advising on the best software solutions for a company's business strategy. Different software solutions are being sought by businesses in order to align their technology investments. A software consultant is employed as a contractor for a certain amount of time in the software consulting process. Software consulting firms assist businesses in optimizing, designing, processing, architecting, and implementing software. Furthermore, these services assist businesses in making decisions about software technology and their software adoption investment plan. It also enables businesses to have a clear strategy for technology advancement and to come up with innovative ways to streamline corporate procedures.
Technical skills for improving and maintaining software, onsite management services, support & testing services, and system designing and planning services are all provided by software consulting organizations. Software consulting is the process of finding a software solution to optimize a company's operations while saving time.
Software consultants are familiar with the business domain and model. They advise businesses on software solutions that are vital for their technical progress and can add value to their organization through new solutions, enhanced IT architecture, or better integration between current solutions based on this knowledge. For technology updates, businesses are turning to third-party service providers. The service providers examine a company's software's technical advancements.
Many businesses rely on software consulting services to stay afloat in today's fast-paced technology environment. The market is likely to be driven by increasing digitization in corporate operations. Offshoring and globalization are also likely to boost consulting services demand. Enterprises are projected to adopt new technologies like cloud computing and mobile computing, resulting in an increase in the need for consulting services. The expansion in the number of small and medium businesses, as well as the need for more advanced software solutions, is likely to open up new market prospects for building successful software consulting business models.
Impact of COVID 19
The market is rising because to a growing demand for digitization of business processes throughout sectors and verticals, particularly for the smooth integration of software into an enterprise's IT system. However, as a result of the Covid-19 epidemic and the global economic slump, various sectors are experiencing substantial consequences and problems across crucial operations. While the industry has grown significantly in recent years as a result of digitization and technological penetration, the pandemic has forced numerous nations to the brink of recession. As a result, a large number of consulting customers are deferring projects, lowering project scope to save money, or cancelling them entirely. Multiple client projects that were cancelled have had a negative impact on vendor revenues and have hampered market growth in the short term.
Market Growth Factors
Lower infrastructure and storage costs result in a higher return on investment
Businesses are apprehensive about the expenses of data hosting on-premises, both in terms of deployment and maintenance. Furthermore, employee costs and challenges with downtime are two additional worries for businesses. The current competitive environment and global economic conditions have hastened the use of cost-effective business model restructuring strategies. Another reason driving the use of cloud computing services is the rising movement of businesses toward digital transformation and the acceleration of customer experience, both of which are lowering corporate expenses. Furthermore, the cloud provides the pay-as-you-go approach, which allows businesses to pay for cloud services based on how often they use them, resulting in lower prices.
While some IT positions were affected during the epidemic, most IT employees have found it relatively simple to obtain new jobs because to the current skills need. Because IT leaders are aware of the scarcity of talent, they are deliberating carefully before cutting roles. Their organisations, on the other hand, require the correct combination of abilities at any given time, which is a shifting objective.
Hybrid cloud services are becoming more popular
Enterprises with current infrastructure are migrating toward cloud computing services and are prepared to use a hybrid strategy in order to gain the benefits of both on-premises and cloud services. Furthermore, SMEs are significantly considering cloud computing services which is leading to significant benefits such as no upfront infrastructure expenses and compute resources that are available on demand. These variables are influencing the adoption of hybrid cloud services by businesses. Furthermore, the hybrid cloud provides improved workload management, higher security and compliance, and seamless interaction within DevOps teams.
Businesses are turning to the hybrid cloud approach to solve problems that are tough to solve with legacy systems. Hybrid cloud bridges the gap between IT and companies by increasing agility and efficiency while also delivering IT resources quickly and at a reasonable cost. It allows businesses to scale up or down existing applications and infrastructure as needed, while also providing users with high-speed performance and high dependability.
Market Restraining Factors
A growing array of multi-sourcing strategies are being used
Rather than taking a one-size-fits-all strategy, an increasing number of companies are splitting down big consulting contracts into smaller parts and enlisting the help of many vendors to complete tasks. Because consulting companies do not always have competence in every practise area, healthcare organisations are gradually embracing the multi-sourcing approach. Healthcare providers, payers, and government agencies are all pushing for numerous consulting companies to work together on projects. Multi-sourcing, on the other hand, may have its own set of challenges and issues since it necessitates effective and reliable service integration amongst vendors. This might have a detrimental influence on consultancy businesses' profitability.
Enterprise size Outlook
Based on Enterprise Size, the market is segmented into Large Enterprises and Small & Medium Enterprises (SMEs). Over the projected period, the small and medium enterprises category is predicted to grow at the fastest rate. The category is expected to rise as a result of increased activities by different authorities through digital SME campaigns. With the developments in SaaS products, SMEs may now employ low-cost software to compete with bigger enterprises on a level playing field. Over the projected period, these factors are likely to drive demand for software consulting services among small and medium businesses.
Based on Vertical, the market is segmented into BFSI, IT & Telecom, Manufacturing, Government, Retail, Healthcare, Automotive, and Others. In 2020, the BFSI segment held the largest market share. Increased technical innovations in the healthcare industry, including as the Internet of Things (IoT) and wearable, product engineering services, cloud services, data science and business intelligence solutions and integration services are likely to propel the category forward. Furthermore, healthcare providers are likely to increase their need for software consulting services as a result of obligatory government rules and standards for quality and other compliances.
Based on Application, the market is segmented into Enterprise Solutions, Migration & Maintenance Services, Software Security Services, Design Services, Application Development, Application Testing Services, and Others. Over the projected period, the software security services category is expected to develop at the fastest rate. The rising usage of cloud servers to store information, as well as an increase in the number of cyber-attacks to get access to information can be attributed to the expansion of this category. Furthermore, as e-commerce, cloud computing and social networking become more popular throughout the world, the demand for enormous amounts of data to be stored on the cloud with increased security is growing.
Based on Regions, the market is segmented into North America, Europe, Asia Pacific, and Latin America, Middle East & Africa. From 2021 to 2027, the market in Asia Pacific is predicted to grow at the quickest rate. Various governments in the region are pushing software businesses to create and build FOSS for SaaS, mobile apps, and Service-Oriented Architecture (SOA) (SOA). The usage of software consulting services is likely to increase as a result of such activities. In addition, the region's burgeoning e-commerce industry is driving up demand for site design and mobile app design advice to help online firms. This, in turn, is likely to boost the regional market's growth prospects.
The major strategies followed by the market participants are Acquisitions. Based on the Analysis presented in the Cardinal matrix; Oracle Corporation and Accenture PLC are the forerunners in the Software Consulting Market. Companies such as Atos Group, Capgemini SE, CGI, Inc. are some of the key innovators in the Market.
The market research report covers the analysis of key stake holders of the market. Key companies profiled in the report include Ernst & Young Global Limited, Accenture PLC, Cognizant Technology Solutions Corporation, Deloitte Touche Tohmatsu Limited, IBM Corporation, Atos Group, Capgemini SE, Oracle Corporation, SAP SE, and CGI, Inc.
Recent Strategies Deployed in Software Consulting Market
Partnerships, Collaborations, and Agreements:
Apr-2021: Accenture extended its partnership with SAP SE. Together, the companies focused on helping the companies in applying sustainability across their entire business operations as well as grabbing new value throughout their enterprises and supply chains.
Jan-2021: Accenture expanded its partnership with Salesforce, an American cloud-based software company. The partnership aimed to facilitate companies in applying sustainability in their businesses, contribute to advancing the United Nations Sustainable Development Goals (SDGs) as well as satisfy stakeholders and growing customer expectations. Moreover, the partnership would enable Accenture and the latter company to meet the demand for data-based insights around sustainability performance and metrics-driven approaches which helps to transform ESG topics into drivers for positive business outcomes.
Mar-2020: IBM came into a partnership with Infosys, a worldwide leader in next-generation digital services and consulting. Together, the companies focused on helping enterprises that serve in the area of insurance, healthcare, and financial services to modernize, transition, and transform their enterprise workloads and applications by leveraging open innovation, security, and enterprise capabilities of the IBM public cloud.
Acquisitions and Mergers:
Feb-2022: IBM completed the acquisition of Sentaca, a leader in providing telco consulting services and solutions. Through this acquisition, the company aimed to strengthen its hybrid cloud consulting business, add significant skills to help media giants and communications service providers (CSPs) modernize on multiple cloud platforms, innovate as well as transform their businesses.
Jan-2022: Oracle completed the acquisition of Federos, a leader in providing AI-optimized network assurance, cloud-enabled, analytics, and automation software that controls and manages the performance of significant networks and services. Through this acquisition, the company aimed to support the availability and performance of mission-critical networks as enterprises and service providers develop their communications networks.
Dec-2021: Accenture completed the acquisition of the consulting practice of Headspring, an Austin, Texas-based cloud-native and platform engineering services firm. Through this acquisition, the company aimed to strengthen its Cloud First's platform engineering abilities that support the clients to derive greater value from their cloud investments as well as accelerate their transformations.
Dec-2021: Atos took over AppCentrica, a technology, and management consulting company that specializes in Salesforce services and Cloud Applications based in Canada. Through this acquisition, the company would strengthen its expertise in Canada in strategic domains. Moreover, the latter company would accelerate collaboration with the company's customers by offering them secured, decarbonized digital solutions as part of their business transformation programs.
Oct-2021: Accenture took over umlaut, a Germany-based engineering consulting and services firm. Through this acquisition, the company aimed to enhance its deep engineering capabilities that assist companies in leveraging technologies including artificial intelligence, cloud, and 5G to change how they design, manufacture and engineer their products and implant sustainability.
Oct-2021: CGI entered into an agreement to acquire Cognicase Management Consulting (CMC), a leader in providing technology and management consulting services and solutions mainly in the Spanish market. Through this acquisition, the company aimed to expand its foothold in Spain, boost its client-proximity model as well as enable the company to better serve its clients and help them accelerate their digitization.
May-2021: Capgemini took over RXP Services, a worldwide leader in technology services, digital transformation, and consulting. Through this acquisition, the company aimed to strengthen its capabilities in offering end-to-end digital solutions for clients across Australia. Moreover, the acquisition would also strengthen the company's strategic partnerships with ServiceNow, Microsoft, and Salesforce.
Jul-2021: Accenture entered into an agreement to acquire Ethica Consulting Group, an Italy-based provider of advanced software and professional services. Through this acquisition, the company aimed to enhance its abilities in providing digital transformation for clients as well as allowing them to develop advanced products and services by leveraging SAP cloud-based solutions.
Jul-2021: Atos signed an agreement to acquire Visual BI, focused on Cloud Data Analytics and Business Intelligence in the US. The acquisition aimed to strengthen its capability to satisfy customer requirements for BI and analytics in a cloud environment by adding the latter company's consulting services, cloud data-related capabilities, and partnerships to its technology portfolio.
Jul-2021: IBM acquired BoxBoat Technologies, a leading Kubernetes certified service provider and DevOps consultancy. Through this acquisition, the company aimed to strengthen its container strategy and implementation services portfolio to innovate the company's hybrid cloud strategy and accelerate Red Hat OpenShift adoption globally.
Jan-2021: Cognizant signed an agreement to acquire Servian, a privately-held enterprise transformation consultancy specialized in artificial intelligence, data analytics, and cloud. Through this acquisition, the company expanded its integrated, entire digital transformation capabilities in New Zealand and Australia to help customers transform to the cloud, unlock value from data, achieve operational excellence, create digital products and services and modernize enterprise.
Sep-2020: Cognizant took over Tin Roof Software, a growing software product engineering and consulting firm. Through this acquisition, the company aimed to strengthen its software product engineering footprint in the U.S. as well as expand worldwide software development capabilities by combining the expertise of both companies.
Mar-2020: CGI took over TeraThink, a Virginia-based federal government-focused information technology, and management firm. From this acquisition, the company aimed to enhance its capabilities and expand its offerings to satisfy the developing digitization requirements of federal agencies.
Product Launches and Product Expansions:
Jul-2021: Atos today launches Atos Computer Vision Platform, its new highly scalable end-to-end AI video and image analytics platform. It is the most comprehensive video and image analytics solution on the market today and the only one which combines a full offering bringing together a set of pre-trained and customizable AI models, enriched by consultancy expertise with 6 Atos AI Computer Vision labs worldwide, based on high performance hardware and software.
Mar-2021: IBM Security announced new and enhanced services designed to help organizations manage their cloud security strategy, policies and controls across hybrid cloud environments. The services bring together cloud-native, IBM and third-party technologies along with IBM expertise to help organizations create a unified security approach across their cloud ecosystems.
Jan-2021: SAP has launched a new collection of services and software, offered as a single subscription product called "Rise with SAP," designed to assist customers with cloud migration and digital transformation initiatives. New "Rise With SAP" offering includes business process tools from this week's acquisition of Signavio and integration of Microsoft Teams with SAP's S/4HANA ERP application suite.
Market Segments covered in the Report:
By Enterprise Size
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