IT services vendors that lag in adjusting business models to rapidly changing market needs will suffer in 2020

IT services revenue will retain its low single-digit growth trajectory through 1Q20 before it begins to decelerate due to COVID-19

IT services year-to-year trailing 12-month revenue growth, at 2.2% in USD, was up 30 basis points sequentially in 4Q19 and down 400 basis points against the year-ago compare. During 4Q19, benchmarked IT services vendors continued to invest to expand their portfolios and resources to enable business transformations through next-generation technologies that support enterprisewide transformation initiatives across front-, middle- and back-office functions. Lingering growth challenges in traditional IT service areas; competitive pressures in growing IT service areas such as digital, cloud and cybersecurity; and unfavorable market dynamics tied to rising macroeconomic uncertainties and pockets of tight spending slowed vendors’ revenue performance in 4Q19.

For additional insights from TBR’s 4Q19 IT Services Vendor Benchmark, check out this infographic’s corresponding special report.

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