The market is expanding primarily due to the effective integration of software into an enterprise's IT infrastructure, which is being driven by the growing desire for the digitalization of business operations across industries and verticals. However, the Covid-19 pandemic and the global economic slump are having a substantial impact on many sectors and complicating important processes. Although the sector has experienced substantial expansion in recent years due to digitization and the uptake of technology, the pandemic has brought several economies dangerously close to recession.
COVID-19 Impact and Current Market Status
The market is expanding as a result of an increase in demand for business process digitization across industries and verticals, notably for the seamless integration of software into an organization's IT system. However, the Covid-19 outbreak and the global economic downturn are having a significant impact on several sectors and are having trouble with critical operations. Despite the industry's recent rapid growth due to digitization and technological advancement, the pandemic has brought many countries to the verge of recession. As a result, many consulting clients are postponing projects, reducing their scope to save money, or completely scrapping them. Numerous client projects that were cancelled hurt vendor income and slowed down market expansion in the short term.
Software Consulting Market Segment Analysis – By Application Type
Enterprise solutions held the greatest market share of over 21% in 2020, and it is anticipated that they will continue to hold this position throughout the forecast period. According to Forbes' 2017 research, 55% of North American businesses used business intelligence and big data analytics tools to address operational issues. The demand for consulting for business solutions is expected to increase over the coming years as a result of the growing demand for software like Enterprise Content Management (ECM), Enterprise Resource Planning (ERP), and Customer Relationship Management (CRM).
Over the projection period, the software security services segment is predicted to increase at the greatest rate. This market is expanding as a result of more people storing their data on cloud servers and more people using cyberattacks to access that data. Additionally, as e-commerce, social networking, and cloud computing become more widely used, there is a growing demand for highly secure cloud storage of massive amounts of data.
Regardless of the primary business operations of the organisation, software applications have become a necessary component of businesses. Due to its constant network accessibility and vulnerability to a variety of security threats, the security of these software applications has been a top priority for businesses. These elements are projected to increase the need for software security consulting services throughout the forecast, per.
Software Consulting Market Segment Analysis - By Enterprise Size
In 2020, the large enterprise market share (more than 61%) represented the greatest market share. Large businesses need to manage their enormous amounts of data both locally and globally. For security monitoring and data management, these businesses are widely utilising software security services. The Software-as-a-Service (SaaS) model has also been in high demand in the business-to-business (B2B) market, where the application of technologies like Artificial Intelligence (AI) and Machine Learning (ML) is anticipated to enhance automation and data-based decision-making across operations. The major enterprise segment's need for consulting services is anticipated to increase as a result of these developments.
Over the forecast period, the small & medium enterprises segment is anticipated to experience the quickest CAGR. The market is expected to increase as a result of rising activities by various governments through digital SME campaigns. Thanks to improvements in SaaS tools, SMEs may now compete with larger businesses on an equal footing by using affordable software solutions. Over the projected period, these elements are anticipated to increase demand for software consulting services in the small and medium enterprises segment.
Software Consulting Market Segment Analysis - By Geography
With a revenue share of over 31% in 2020, North America dominated the global market and will continue to rise steadily from 2021 through 2028. A significant amount of money is being invested in technology R&D across many businesses in the region. The region's demand for IT and software solutions is anticipated to expand as industries place more emphasis on big data and Internet of Things (IoT) technology. Additionally, the region's demand for software consulting is expanding as a result of the emerging trend of digital transformation. Compared to other countries in the North American region, U.S. businesses have a stronger demand for software consulting. Over the course of the projection period, market expansion in the region is anticipated to be fueled by the rising number of technological start-ups and the ongoing usage of cloud services, ERP, and CRM.
The market in Asia-Pacific is predicted to expand at the fastest rate between 2021 and 2028. Several regional governments support the development of Free and Open-Source Software (FOSS) for SaaS, mobile applications, and service-oriented architecture (SOA). The use of software consulting services should be encouraged by these activities. Additionally, there is a larger need for site design and mobile app design guidance to support online businesses as the region's e-commerce industry grows. It is then envisaged that the local market will profit from these growth prospects.
The size of the worldwide software consulting industry was estimated at USD 218.60 billion in 2020, and it is projected to increase at a 12.0% CAGR from 2021 to 2029.
Vendors are concentrating on using a digitally centred approach in the wake of the pandemic to deliver their services at a reduced cost while removing expenses, like consultant travel fees. Vendor scanning uses virtual consulting platforms to achieve high-impact results that are comparable to those of physical training without requiring consultants to be physically present. The goal of service providers is to draw in new customers who want to automate processes to cut operating costs while choosing creative solutions to tackle challenging business issues.
The key drivers of market expansion are the digitization of sectors and the development of the Enterprise 2.0 concept, which entails combining social software and collaborative technology for corporate processes. The need for new services is rising, and businesses are being encouraged to adopt creative and original solutions by technological advancements in cloud computing and data analytics. Additionally, it is anticipated that investments in cutting-edge software technology would be stimulated by the rising demand for software consulting services. These services support businesses in their decision-making regarding their investment strategy for adopting software.
Through the use of software, businesses are placing a major emphasis on strengthening job quality, accelerating delivery, decreasing labour costs, and enhancing transparency and accountability. The global epidemic is making it difficult for businesses to meet the expectations of their customers, therefore they are increasingly turning to software consulting services and solutions to speed up service delivery.
On the other side, as the world becomes more digitally connected, data theft incidents are also on the rise as hackers attempt to obtain sensitive organisational data by leveraging rising software use and cloud computing penetration rates. This is expected to limit the growth of the software consulting business somewhat.
The market is extremely competitive, with several market participants serving various industry sectors. A major barrier to entry for aspiring players is the existence of established players. However, it is anticipated that the market's growing development of distinctive software consulting solutions and services would present growth prospects for new players. Accenture PLC and Atos SE are a few of the prominent players. Inc. Capgemini CGI Group Cognizant Clearfind DT Tohmatsu Deloitte Ltd LLP Ernst & Young Global Business Machines Corporation Rapport IT SAP SE Oracle Corp. PricewaterhouseCoopers B.V.
Recent Developments of Software Consulting Market
- Acando AB was purchased by CGI Group Inc. in April 2019. The business sought to expand its IT consulting offerings with this acquisition, assisting clients with system integration, strategic advising, and customer-centric digital innovation skills
Software Consulting Market Scope
|Forecast Unit||Value (USD)|
|Revenue forecast in 2028||USD 539.18 billion|
|Growth Rate||CAGR of 12 % during 2021-2028|
|Segment Covered||By Enterprise Size, By Vertical, Regions|
|Regions Covered||North America, Europe, Asia Pacific, Middle East and Africa, South America|
|Key Players Profiled||Accenture PLC, Atos SE, Capgemini, CGI Group Inc., Clearfind, Cognizant, Deloitte Touche Tohmatsu Limited, Ernst & Young LLP, International Business Machines Corporation, Accenture PLC, Atos SE, Capgemini, CGI Group Inc., Clearfind, Cognizant, Deloitte Touche Tohmatsu Limited, Ernst & Young LLP, International Business Machines Corporation, Oracle Corporation, PricewaterhouseCoopers B.V., Rapport IT, SAP SE|
Key Segment Of The Software Consulting Market
By Enterprise Size, 2021-2028 (USD Million)
• Large Enterprises and
• Small & Medium Enterprises (SMEs)
By Vertical, 2021-2028 (USD Million)
• IT & Telecom
By Application, 2021-2028 (USD Million)
• Enterprise Solutions
• Migration & Maintenance Services
• Software Security Services
• Design Services
• Application Development
• Application Testing Services,
Regional Overview, 2021-2028 (USD Million)
• Rest of Europe
• Rest of Asia Pacific
• Rest of South America
Middle East and South Africa