IT Consulting in the US - Market Research Report (2014-2029)
New York, United States
Last Updated: July 2024
NAICS 54151Revenue
$710.7bn
Past 5-Year Growth
Profit
$XX.Xbn
Employees
3m
Businesses
497k
Wages
$XXX.Xbn
IT Consulting in the US industry analysis
Due to low capital requirements, a sizable number of operators are small nonemployers or independent contractors. IT Consulting has experienced a shift in technological change towards cloud computing and data analytics. The constantly changing character of the industry has led larger players to acquire smaller companies and develop new products to remain competitive. Industry revenue has grown at a CAGR of 2.8% to $692.9 billion over the five years to 2023, including a rise of 1.2% in 2023 alone. Profit is expected to remain relatively steady and account for 6.4% of revenue in 2023.
Trends and Insights
- Shifting technology trends reshape the industry as the world becomes more technology-driven. Businesses across all industries have become reliant on external IT services.
- Computer systems development has enabled operators to expand services. On premise servers and storage devices increasingly help with managing information.
- Regions with a cluster of financial services companies attract the services of the industry. New York being the financial capital of the world has directly benefited from industry services.
- Competition is fierce as firms boast their abilities to provide insight and fulfill all of a client’s needs. Competition is based on technical expertise, quality of service, availability of value-added services and price.
Industry Overview
Market size and recent performance (2014-2029)
Industry revenue has grown at a CAGR of 2.9 % over the past five years, to reach an estimated $710.7bn in 2024.
Trends and Insights
The world is becoming more technology-driven
- Businesses across all industries rely on external IT support to operate more efficiently.
- Additional trends and insights available with purchase
Source: IBISWorld
Industry outlook (2024-2029)
Market size is projected to grow over the next five years.
Trends and Insights
Business confidence and investment will be critical drivers of the industry
- Businesses seek the assistance of IT consultants to improve operational efficiency through system upgrades and integration.
Biggest companies in the IT Consulting in the US
| Company | Market Share (%)
2024 | Revenue ($m)
2024 | Profit ($m)
2024 | Profit Margin (%)
2024 |
|---|---|---|---|---|
Dell Technologies Inc. | 7,353.9 | 429.3 | 5.8 | |
Tata Consultancy Services Ltd | 7,331.6 | 461.9 | 6.3 | |
Booz Allen Hamilton Inc. | 6,992.0 | 440.5 | 6.3 |
To view the market share and analysis for all 50 top companies in this industry, view purchase options.
Products & Services Segmentation
Source: IBISWorld
Industry revenue is measured across several distinct product and services lines, including Computer systems development, Custom services and Technical support. Computer systems development is the largest segment of the IT Consulting in the US.
Trends and Insights
Custom services lag but remain the largest segment as small-sized businesses rely on experts to create custom software
- Custom application design, development and integration services enable companies to retrieve, organize, manage and manipulate data and databases to meet their individual needs. This product segment represents the largest group of services provided by operators.
- More insights available in the full report
Widen you competitive advantage with related industries
Competitors
- Management Consulting in the US
Complementors
- Computer & Packaged Software Wholesaling in the US
- Software Publishing in the US
- Data Processing & Hosting Services in the US
International industries
- IT Consulting in Canada
- Computer System Design Services in Australia
- Computer System Design Services in New Zealand
- Computer Consultants in the UK
- Computer Consultants in Ireland
Table of Contents
About this industry
Industry definition
The IT Consulting industry includes firms that provide the following services to client companies: writing, testing and supporting custom software; planning and designing integrated hardware, software and communication infrastructure; and on-site management of computer systems and data processing facilities. This industry excludes packaged software publishers and off-site data processing and hosting services.
What's included in this industry?
Providing information technology expertise for consumersWriting, modifying, testing and supporting software to meet the specific needs of one clientPlanning, design and integration of computer or network systemsOn-site management and operation of IT functionsCompanies
Dell Technologies Inc.Tata Consultancy Services LtdBooz Allen Hamilton Inc.Purchase this report to view all 50 major companies in this industry.
Related Terms
INFORMATION TECHNOLOGY (IT)SERVEROUTSOURCECLOUD COMPUTINGSOFTWARE AS A SERVICE (SAAS)COMMODITIZATIONINTEGRATED SYSTEMVIRTUALIZATIONTHIRD PLATFORMBIG DATA ANALYTICSIndustry Code
NAICS 54151 - IT Consulting in the US
Performance
Get an indication of the industry's health through historical, current and forward-looking trends in the performance indicators that make or break businesses.
Analyst insights
Shifting technology trends reshape the industry as the world becomes more technology-driven. Businesses across all industries have become reliant on external IT services.
In this chapter (4)
- Current Performance
- Outlook
- Volatility
- Life Cycle
Key metrics
- Annual Revenue, Recent Growth, Forecast, Revenue Volatility
- Number of Employees, Recent Growth, Forecast, Employees per Business, Revenue per Employee
- Number of Businesses, Recent Growth, Forecast, Employees per Business, Revenue per Business
- Total Profit, Profit Margin, Profit per Business
Charts
- Revenue, including historical (2014-2023) and forecast (2024-2029)
- Employees, including historical (2014-2023) and forecast (2024-2029)
- Businesses, including historical (2014-2023) and forecast (2024-2029)
- Profit, including historical (2014-2024)
- Industry Volatility vs. Revenue Growth
- Industry Life Cycle
Detailed analysis
- Trends in supply, demand and current events that are driving current industry performance
- Expected trends, economic factors and ongoing events that drive the industry's outlook
- Key success factors for businesses to overcome volatility
- How contribution to GDP, industry saturation, innovation, consolidation, and technology and systems influence the industry's life cycle phase.
Products and Markets
Learn about an industry's products and services, markets and trends in international trade.
Analyst insight
Computer systems development has enabled operators to expand services. On premise servers and storage devices increasingly help with managing information.
In this chapter
- Products & Services
- Major Markets
Key metrics
- Largest market segment and value in 2024
- Product innovation level
Charts
- Products & services segmentation in 2024
- Major market segmentation in 2024
Detailed analysis
- Trends impacting the recent performance of the industry's various segments
- Innovations in the industry's product or service offering, specialization or delivery method
- Key factors that successful businesses consider in their offerings
- Buying segments and key trends influencing demand for industry products and services
Geographic Breakdown
Discover where business activity is most concentrated in an industry and the factors driving these trends to find opportunities and conduct regional benchmarking.
Analyst insights
Regions with a cluster of financial services companies attract the services of the industry. New York being the financial capital of the world has directly benefited from ind...
In this chapter (1)
- Business Locations
Charts
- Share of revenue, establishment, wages and employment in each state
- Share of population compared to establishments in each region in 2024
Tables
- Number and share of establishments in each state in 2024
- Number and share of revenue each state accounts for in 2024
- Number and share of wages each state accounts for in 2024
- Number and share of employees in each state in 2024
Detailed analysis
- Geographic spread of the industry across North America, and trends associated with changes in the business landscape
- Key success factors for businesses to use location to their advantage
Competitive Forces
Get data and insights on what's driving competition in an industry and the challenges industry operators and new entrants may face, with analysis built around Porter's Five Forces framework.
Analyst insights
Competition is fierce as firms boast their abilities to provide insight and fulfill all of a client’s needs. Competition is based on technical expertise, quality of service, ...
In this chapter (4)
- Concentration
- Barriers to Entry
- Substitutes
- Buyer & Supplier Analysis
Key metrics
- Industry concentration level
- Industry competition level and trend
- Barriers to entry level and trend
- Substitutes level and trend
- Buyer power level and trend
- Supplier power level and trend
Charts
- Market share concentration among the top 4 suppliers from 2019-2024
- Supply chain including upstream supplying industries and downstream buying industries, flow chart
Detailed analysis
- Factors impacting the industry’s level of concentration, such as business distribution, new entrants, or merger and acquisition activity.
- Key success factors for businesses to manage the competitive environment of the industry.
- Challenges that potential industry entrants face such as legal, start-up costs, differentiation, labor/capital intensity and capital expenses.
- Key success factors for potential entrants to overcome barriers to entry.
- Competitive threats from potential substitutes for the industry’s own products and services.
- Key success factors for how successful businesses can compete with substitutes.
- Advantages that buyers have to keep favorable purchasing conditions.
- Advantages that suppliers have to maintain favorable selling conditions.
- Key success factors for how businesses can navigate buyer and supplier power.
Companies
Learn about the performance of the top companies in the industry.
Analyst insights
The five largest operators account for just over 5.0% of industry revenue. The sheer size of the industry and the services offered prevents a single company from dominating t...
In this chapter
- Market Share Concentration
- Companies
- Company Spotlights
Charts
- Industry market share by company in 2020 through 2024
- Major companies in the industry, including market share, revenue, profit and profit margin in 2024
- Overview of Dell Technologies Inc.'s performance by revenue, market share and profit margin from 2018 through 2024
- Overview of Tata Consultancy Services Ltd's performance by revenue, market share and profit margin from 2018 through 2024
- Overview of Booz Allen Hamilton Inc.'s performance by revenue, market share and profit margin from 2018 through 2024
- Overview of revenue, market share and profit margin trend for 47 additional companies
Detailed analysis
- Description and key data for Dell Technologies Inc., and factors influencing its performance in the industry
- Description and key data for Tata Consultancy Services Ltd, and factors influencing its performance in the industry
- Description and key data for Booz Allen Hamilton Inc., and factors influencing its performance in the industry
- Description, key data and performance trends for 47 additional companies
External Environment
Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.
Analyst insights
Intellectual property protects the products that operators create and is crucial to the profitability of the industry. Companies rely on patent, copyright, trademark and trad...
In this chapter
- External Drivers
- Regulation & Policy
- Assistance
Key metrics
- Regulation & policy level and trend
- Assistance level and trend
Charts
- Regulation & Policy historical data and forecast (2014-2029)
- Assistance historical data and forecast (2014-2029)
Detailed analysis
- Demographic and macroeconomic factors influencing the industry, including Regulation & Policy and Assistance
- Major types of regulations, regulatory bodies, industry standards or specific regulations impacting requirements for industry operators
- Key governmental and non-governmental groups or policies that may provide some relief for industry operators.
Financial Benchmarks
View average costs for industry operators and compare financial data against an industry's financial benchmarks over time.
Analyst insights
Digital technology solutions that service all market sectors and new technology can improve profit. Clients continue to rely on digital technology solutions to drive business...
In this chapter
- Cost Structure
- Financial Ratios
- Key Ratios
Key metrics
- Profit margin, and how it compares to the sector-wide margin
- Average wages, and how it compares to the sector-wide average wage
- Largest cost component as a percentage of revenue
- Industry average ratios for days' receivables, industry coverage and debt-to-net-worth ratio
Charts
- Average industry operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
- Average sector operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
- Investment vs. share of economy
Data tables
- Industry Multiples (2017-2022)
- Industry Tax Structure (2017-2022)
- Income Statement (2017-2022)
- Balance Sheet (2017-2022)
- Liquidity Ratios (2017-2022)
- Coverage Ratios (2017-2022)
- Leverage Ratios (2017-2022)
- Operating Ratios (2017-2022)
- Cash Flow & Debt Service Ratios (2014-2029)
- Revenue per Employee (2014-2029)
- Revenue per Enterprise (2014-2029)
- Employees per Establishment (2014-2029)
- Employees per Enterprise (2014-2029)
- Average Wage (2014-2029)
- Wages/Revenue (2014-2029)
- Establishments per Enterprise (2014-2029)
- IVA/Revenue (2014-2029)
- Imports/Demand (2014-2029)
- Exports/Revenue (2014-2029)
Detailed analysis
- Trends in the cost component for industry operators and their impact on industry costs and profitability
Key Statistics
Industry Data
Data Tables
Including values and annual change:
- Revenue (2014-2029)
- IVA (2014-2029)
- Establishments (2014-2029)
- Enterprises (2014-2029)
- Employment (2014-2029)
- Exports (2014-2029)
- Imports (2014-2029)
- Wages (2014-2029)
Methodology
How are IBISWorld reports created?
IBISWorld has been a leading provider of trusted industry research for over 50 years to the most successful companies worldwide. With offices in Australia, the United States, the United Kingdom, Germany and China, we are proud to have local teams of analysts that conduct research, data analysis and forecasting to produce data-driven industry reports.
Our analysts start with official, verified and publicly available sources of data to build the most accurate picture of each industry. Analysts then leverage their expertise and knowledge of the local markets to synthesize trends into digestible content for IBISWorld readers. Finally, each report is reviewed by one of IBISWorld’s editors, who provide quality assurance to ensure accuracy and readability.
IBISWorld relies on human-verified data and human-written analysis to compile each standard industry report. We do not use generative AI tools to write insights, although members can choose to leverage AI-based tools within the platform to generate additional analysis formats.
What data sources do IBISWorld analysts use?
Each industry report incorporates data and research from government databases, industry-specific sources, industry contacts, and our own proprietary database of statistics and analysis to provide balanced, independent and accurate insights.
Key data sources in the US include:
- US Census Bureau
- US Bureau of Labor Statistics
- US International Trade Commission
Analysts also use industry specific sources to complement catch-all sources, although their perspective may focus on a particular organization or representative body, rather than a clear overview of all industry operations. However, when balanced against other perspectives, industry-specific sources provide insights into industry trends.
These sources include:
- Industry and trade associations
- Industry federations or regulators
- Major industry players annual or quarterly filings
Finally, IBISWorld’s global data scientists maintain a proprietary database of macroeconomic and demand drivers, which our analysts use to help inform industry data and trends. They also maintain a database of statistics and analysis on thousands of industries, which has been built over our more than 50-year history and offers comprehensive insights into long-term trends.
How does IBISWorld forecast its data?
IBISWorld’s analysts and data scientists use the sources above to create forecasts for our proprietary datasets and industry statistics. Depending on the dataset, they may use regression analysis, multivariate analysis, time-series analysis or exponential smoothing techniques to project future data for the industry or driver. Additionally, analysts will leverage their local knowledge of industry operating and regulatory conditions to impart their best judgment on the forecast model.
IBISWorld prides itself on being a trusted, independent source of data, with over 50 years of experience building and maintaining rich datasets and forecasting tools. We are proud to be the keystone source of industry information for thousands of companies across the world.
Learn more about our methodology and data sourcing on the Help Center.
Frequently Asked Questions
Unlock comprehensive answers and precise data upon purchase. View purchase options.
What is the market size of the IT Consulting in the US industry in United States in 2024?
The market size of the IT Consulting in the US industry in United States is $710.7bn in 2024.
How many businesses are there in the IT Consulting in the US industry in 2024?
There are 497k businesses in the IT Consulting in the US industry in United States, which has grown at a CAGR of 1.6 % between 2019 and 2024.
Has the IT Consulting in the US industry in United States grown or declined over the past 5 years?
The market size of the IT Consulting in the US industry in United States has been growing at a CAGR of 2.9 % between 2019 and 2024.
What is the forecast growth of the IT Consulting in the US industry in United States over the next 5 years?
Over the next five years, the IT Consulting in the US industry in United States is expected to grow.
What are the biggest companies in the IT Consulting in the US market in United States?
The biggest companies operating in the IT Consulting market in United States are Dell Technologies Inc., Tata Consultancy Services Ltd and Booz Allen Hamilton Inc.
What does the IT Consulting in the US in United States include?
Providing information technology expertise for consumers and Writing, modifying, testing and supporting software to meet the specific needs of one client are part of the IT Consulting in the US industry.
Which companies have the highest market share in the IT Consulting in the US in United States?
The company holding the most market share in United States is Dell Technologies Inc..
How competitive is the IT Consulting in the US industry in United States?
The level of competition is high and increasing in the IT Consulting in the US industry in United States.
