Market Trends of United States IT Services Industry
IT Outsourcing to Hold Major Market Share
- The majority of US companies have long outsourced IT work to developing economies to save on labor costs. The country houses major IT outsourcing players such as IBM, DXC, and Cognizant, which fuels the country's offshore and onshore IT outsourcing market during the forecast period.
- The country has been registering significant digital transformations across all private and government-owned businesses, creating an opportunity for market vendors, such as TCS, Infosys, etc., to expand their businesses by contracting with the enterprises for their IT outsourcing service offerings.
- A US-based employer, for instance, considers a set of cost parameters while hiring a US-based employee. These costs include recruiting, office space, computer equipment, office furniture, supervision/training, quality assurance, wage/salary, Federal Insurance Contributions Act (FICA), Medicare, unemployment insurance, workman's comp, benefits, retirement plan, paid holidays, sick days, employee turnover, office supplies, human resources department, and government regulations compliance oversight.
- Amongst these cost stacks, the IT outsourcing option becomes more viable. The global IT services vendors also Additionally, the global IT services vendors resorted to expanding their footprints in the country. Such action clearly indicates demand soaring for IT outsourcing from local companies. In order to offer digital transformation services to clients in the smart manufacturing, insurance, aerospace and defence sectors, HCL Technologies has established a global delivery centre in the country.
- Many midscale IT service companies operating in the US, such as Onix Networking Corp, Innowise Inc., etc., have been partnering with global technology companies, such as Microsoft and Google, to increase their IT outsourcing service capabilities, supporting the market growth in the country. For instance, in February 2023, Onix announced that it has collaborated in the Google Cloud Partner Advantage program to gain the application Development Partner Specialization. It expanded its IT outsourcing service, offering the capability and capacity to build customer solutions in the Application Development field using Google Cloud technology.
- The digitization trend in the country with Industry 4.0 has led to the reshoring of IT services, i.e., bringing operations back to the US shores. This has become increasingly popular as the government has been aiming to create domestic jobs and help in the resurgence of the American economy, which can support the market expansion of IT outsourcing companies in the country and drive the market during the forecast period.
- The Bureau of Labor Statistics in the United States estimates that there will be a 31% increase in employment between now and 2026. In addition, in this period, approximately 255,400 IT jobs are expected to be created. About 0.36 million people were employed by the public sector and about 0.083 million for information industries within the United States.
Understand The Key Trends Shaping This Market
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Healthcare to be the Largest End-user Industry
- Advanced and emerging technologies have recently transformed healthcare in the United States. In response to the changing regulatory environment, hospitals and doctor's offices have introduced new technology that improves quality of care for patients. High technology operations are now being carried out at medical facilities in the country, placing advanced technologies in the hands of talented professionals.
- IT services in the healthcare sector enable the implementation of insights-driven solutions for efficient and digitally accessible healthcare that suit individual organizations to small or big multiservice organizations and franchises. Additionally, these services help healthcare customers streamline integrated care delivery for better clinical, financial, and operational outcomes.
- Moreover, the implementation of IT services in the healthcare sector is rapidly rising across the United States as healthcare organizations focus on digitizing healthcare practices for improved care. Therefore, various IT service providers are introducing healthcare IT services in the region.
- For example, Damco's HIPAA complaint telemedicine solution enables healthcare providers to offer quality and safe telehealth services that give a more favourable alternative to traditional medical models. By using the Internet and mobile devices to connect with doctorsleveraging videoconferencing or audiophone call communications, booking online appointments, undergoing real time consultations, getting more information about medical treatments remotely, this company's IT service enables patients to access healthcare services from wherever they are.
- Furthermore, the government has forecasted the healthcare expenditure to reach USD 7.147 trillion, thereby contributing to the market growth. In the United States, digital transformation in healthcare involves the integration of digital functions or processes across the enterprise - be it a payer, a provider, or another organization.
- By combining digital systems and processes, digitally transformed healthcare can offer its patients individualized and omnichannel experiences. Advancements in electronic medical records or other initiatives striving for medical interoperability reflect the recent shift toward the digital transformation of healthcare in the United States. Such developments are boosting the adoption of IT services in the United States.
