Computer System Design 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 48,000 computer system design services providers in the US integrate computer hardware, software, and communication technologies. Types of services include computer systems design, development, and integration; customer application design and development; and IT technical consulting and support. Firms may also provide services related to network development and design, cybersecurity, and communications.
Dependence on Skilled Labor
The computer system design services industry relies on a highly skilled, highly paid workforce, which includes computer and software engineers, programmers, systems integrators, and management with experience in information technology.
Rapid Advances in Technology
The computer and information systems management industry is characterized by rapid advances in technology that create volatility and uncertainty.
Industry size & Structure
The average computer system design service provider operates out of a single location, employs about 20 workers, and generates about $4-5 million annually.
- The computer system design services industry consists of about 48,000 companies that employ over 1 million workers and generate over $204 billion annually.
- The industry is concentrated at the top and fragmented at the bottom; the top 50 companies account for 55% of industry revenue.
- Large firms, which include IBM, GDIT, and Unisys, typically have global operations.
Industry Forecast
Computer System Design Services Industry Growth
Recent Developments
Feb 10, 2025 - AI Capacity Limitations may Impact Industry Growth
- Amazon Web Services (AWS) is struggling with capacity constraints in its data centers, restricting the cloud division's growth as AI demand surges, CEO Andy Jassy said. Rival Microsoft has also said that its cloud sales growth was hurt because it didn’t have enough data centers to handle demand for its AI products. AWS CEO Jassy said that limited AI chip supply and power capacity are affecting the ability of Amazon Web Services to bring new data centers online.
- A total of 677 major health data breaches affecting more than 182 million people occurred in 2024 as of December 20, according to The US Department of Health and Human Services' Office for Civil Rights' HIPAA Breach Reporting Tool. Computer system design services may be affected if the record number of breaches increases calls for greater computer system security. Business associates were involved in 212, or about a third of the major breaches reported, but those vendor incidents affected more than 131 million individuals - or about 75% of people affected by major health data breaches this year.
- Global merger and acquisition (M&A) activity, an indicator of demand for computer system design services, increased 18% year over year in Q3 2024 to $582 billion, according to GlobalData. Deal volume increased 4% year over year in Q3 to a record 7,890 deals. The technology, media, and telecommunications sector led M&A deal activity with 2,333 deals worth $150 billion. Most sectors saw a year-over-year decrease in deal value in Q3 2024. Mega-deals (defined as any deal valued at more than $1 billion), increased to 137 deals in Q3 2024 compared to 103 in Q3 2023.
- Computer system design service industry employment increased slightly during the first 11 months of 2024 while and average wages for nonsupervisory employees increased moderately, according to the US Bureau of Labor Statistics (BLS). Revenue for computer system design services increased 7.6% year over year and 1% quarter over quarter in the third quarter of 2024, according to the US Census Bureau. Computer system design service industry sales are forecast to grow at a 3.62% compounded annual rate from 2024 to 2028, slower than the growth of the overall economy, according to Inforum and the Interindustry Economic Research Fund, Inc.
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