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Industry Landscape
The IT Services industry is experiencing robust growth driven by digital transformation initiatives, cloud adoption, and the persistent tech talent shortage. Companies are increasingly relying on external partners for specialized skills, project delivery, and managed solutions, leading to high demand for flexible and scalable IT services. Onshore delivery models, particularly with a focus on rural talent, are gaining traction.
Total Assets Under Management (AUM)
IT Services Market Size in United States
~Approximately $500 billion USD (2023 estimate)
(8-10% CAGR)
Growth is driven by:
- Cloud migration and modernization initiatives.
- Increased demand for cybersecurity and data analytics.
- Continued investment in AI and automation.
Total Addressable Market
500 billion USD
Market Growth Stage
Pace of Market Growth
Emerging Technologies
Generative AI
Generative AI will revolutionize IT service delivery by automating code generation, content creation, and intelligent virtual assistants, significantly boosting productivity and enabling new service offerings.
Edge Computing
Edge computing will enable faster data processing closer to the source, reducing latency for real-time applications and driving demand for specialized IT infrastructure and management services.
Cybersecurity Mesh Architecture (CSMA)
CSMA will shift security from a perimeter-based approach to a distributed, modular one, demanding advanced expertise in integrated security tools and identity-centric access control.
Impactful Policy Frameworks
American Data Privacy and Protection Act (ADPPA) - Proposed
The American Data Privacy and Protection Act (ADPPA) is a proposed bipartisan federal privacy bill that would establish a comprehensive national data privacy standard across the U.S., superseding many existing state laws.
This policy would standardize data handling requirements, increasing compliance complexity and requiring IT services firms to enhance data privacy and security offerings.
Executive Order on Improving the Nation’s Cybersecurity (EO 14028) - 2021
This Executive Order mandates new cybersecurity requirements for federal agencies and their contractors, focusing on zero trust architecture, software supply chain security, and incident response.
The EO increases demand for cybersecurity expertise, secure software development, and compliance services for federal contractors and those aspiring to work with the government.
NIST AI Risk Management Framework (AI RMF 1.0) - 2023
The National Institute of Standards and Technology (NIST) AI Risk Management Framework (AI RMF 1.0) provides voluntary guidance for managing risks associated with artificial intelligence systems, emphasizing trustworthy and responsible AI development.
This framework encourages ethical AI development and deployment, increasing the need for IT services that can integrate AI governance, bias detection, and explainability into client solutions.
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