Computer Facilities Management Services
Industry Profile Report
Dive Deep into the industry with a 25+ page industry report (pdf format) including the following chapters
Industry Overview Current Conditions, Industry Structure, How Firms Operate, Industry Trends, Credit Underwriting & Risks, and Industry Forecast.
Call Preparation Call Prep Questions, Industry Terms, and Weblinks.
Financial Insights Working Capital, Capital Financing, Business Valuation, and Financial Benchmarks.
Industry Profile Excerpts
Industry Overview
The 5,000 computer facilities management firms in the US provide management of clients’ computer systems and data processing. Services include computer systems management, network design and development, business process management, systems integration, and IT technical support. Firms work with businesses of all types and sizes, as well as governments, and may offer services tailored to an industry.
Hiring and Retaining Technical Staff
Loss of key personnel can disrupt operations and complicate relationships with clients.
Customers Bring IT In-house
Computer facilities management services firms lose contract renewals and opportunities when clients or prospects opt to hire IT staff and manage their own systems.
Industry size & Structure
A typical computer facilities management services firm operates out of a single location, employs around 16 workers, and generates about $4 million annually.
- The computer facilities management services industry consists of about 5,000 companies which employ about 78,500 workers and generate about $20 billion annually.
- Customer industries include businesses of all types and governments.
- The industry is concentrated with the 20 largest firms representing 40% of revenue.
- Large companies include DXC Technology, Century Link, Summit Information Systems, Strata Information Technology, and Asante Alliance.
Industry Forecast
Computer Facilities Management Services Industry Growth
Recent Developments
Jul 13, 2024 - Labor Costs Increase
- Computer facilities management industry employment and average wages for nonsupervisory employees increased slightly during the first five months of 2024, according to the US Bureau of Labor Statistics. Computer facilities management service industry sales are forecast to grow at a 4.35% compounded annual rate from 2024 to 2028, faster than the growth of the overall economy, according to Inforum and the Interindustry Economic Research Fund, Inc.
- The number of cyberattacks has almost doubled in the past five years — averaging 758,000 annually — according to the FBI’s Internet Criminal Complaint Center. The figure represents only known cases, however. FBI staff who infiltrated the Hive ransomware network in 2023 discovered that only one in five victims had filed complaints with law enforcement. Computer facilities management services may be negatively impacted if legal liability for security breaches shifts from organizations using computer technology to those that supply and maintain it.
- CIOs are increasingly doubtful about cloud-first computing, according to CIO.com. The resulting infrastructure of choice — a combination of on-premises and hybrid-cloud platforms — will aim to reduce cost overruns, contain cloud chaos, and ensure adequate funding for generative AI projects. “The most common motivator for repatriation I’ve been seeing is cost,” said David Linthicum, former chief cloud strategy officer at Deloitte. “...most enterprise workloads aren’t exactly modern” and thus not best fits for the cloud, Linthicum added.
- Government-approved cloud services have taken the lead over on-premises data centers for critical computing workloads at federal agencies, according to a survey of federal IT officials by government technology news site FedScoop. The volume of critical computing workloads operating on government-dedicated cloud services grew faster since mid-2020, according to nearly half (47%) of survey respondents, compared to workloads run in agency-owned/operated data centers (28%). And nearly twice as many respondents (56%) are looking at government-approved cloud platforms to increase hardware capacity over the next three years compared to agency-owned/operated data centers (33%). Agencies continue to view government-approved clouds as offering greater operational advantages. But advances in server performance, economy, and security control make upgrading agency data centers viable for certain computing workloads.
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