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
Nov 3, 2024 - M&A Activity Increases
- 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.
- Commercial chapter 11 bankruptcy filings increased 40% year over year in July, according to the American Bankruptcy Institute. Overall commercial filings increased 17%. Computer system design services may be negatively impacted if investment in IT infrastructure decreases as a result. “We continue to see a strong and steady rise in bankruptcy filings across the board, reflecting ongoing financial pressures faced by both businesses and individuals,” Michael Hunter, vice president of Epiq AACER, said. “Based on current trends and economic indicators, I expect bankruptcy filing volumes to continue this steady increase throughout the remainder of 2024 and into 2025.”
- The number of cyberattacks increased 30% year over year during the second quarter of 2024, reaching 1,636 attacks per organization per week around the world, according to Check Point Research. The three most attacked industries were education/research (3,341 attacks per week), government/military (2,084 attacks per week) and healthcare (1,999 attacks per week). North America accounted for 58% of publicly extorted ransomware attacks victims. The Manufacturing sector represented 29% of the published ransomware victims globally, marking a 56% year-over-year increase.
- Computer system design service industry employment increased slightly during the first nine 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 2.3% year over year and 1.8% quarter over quarter in the second 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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