US IT Services Revenue Projected to Grow at 5.9% CAGR till 2020

The Freedonia Group, a division of, has released a report on IT services in the United States. It projects the revenue from IT services in the US would grow at a CAGR of 5.9% till 2020.

The infrastructure provisioning and management (IP&M) segment, which allows sharing of infrastructure resources with different customers, would have the fastest growth during the forecast period. This growth would be driven by an increasing demand for hosting services, which in turn is driven by greater adoption of the cloud.

IP&M providers reap benefits arising due to economies of scale, such as:

  • Shared capital resources provided by cloud and virtualization technologies ensure higher utilization of available infrastructure
  • Reduced competition
  • Higher Return on Investment (ROI) on hardware resources
  • Superior bargaining power for hardware and services

But, the report found that the adoption of IP&M systems has been slow in industries which handle sensitive customer data like hospitals, banks and insurance providers, due to liability concerns.

The report includes IT service revenues from all domestic locations in the US. It segments the revenue by the various IT service types, including infrastructure provisioning and management, custom applications, infrastructure design and development, technical consulting, technical support and training.

This article was originally published on Read IT Quik

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