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
Jul 13, 2024 - Weak Sales Growth Expected
- 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. Computer system design industry employment increased slightly during the first five months of 2024 while average wages for nonsupervisory employees decreased slightly, according to the US Bureau of Labor Statistics.
- 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 system design services may be negatively impacted if legal liability for security breaches shifts from organizations using computer technology to those that supply and maintain it.
- More than 50,000 technology sector employees were laid off during the first quarter of 2024, according to layoffs tracking site Layoffs.fyi. Layoffs reflect a broader trend in the tech job market, where companies increasingly lean on AI and automation for efficiency and innovation, often resulting in a reduced human workforce, according to Techopedia. More than 240,000 roles left the tech industry globally in 2023, according to Techpedia.
- 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.
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