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 46,700 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 24-25 workers, and generates about $4-5 million annually.

    • The computer system design services industry consists of about 46,700 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
                                    Source: Vertical IQ and Inforum

                                    Recent Developments

                                    Nov 14, 2023 - Slow Sales Growth Expected
                                    • Computer system design service industry sales are forecast to grow at a 3.69% compounded annual rate from 2022 to 2027, slower than the growth of the overall economy. Industry employment increased slightly during the first eight months of 2023 while average wages for nonsupervisory employees were unchanged.
                                    • The number of public and private corporate bankruptcies filings totaled 516 this year through September, according to an S&P Global Market Intelligence report. That’s just below the 518 filings in the first three quarters of 2020, when the US economy suffered through a short but deep recession as a result of the coronavirus pandemic. Filings that year totaled 639. The Federal Reserve’s interest-rate increases, meant to fight inflation by cutting demand for goods and services, may be responsible, according to Barron’s, as many companies paying more to borrow, and sales are at risk too. Computer system design services may be negatively impacted if spending on technology decreases.
                                    • The Biden Administration has released its National Cybersecurity Strategy Implementation Plan (NCSIP). The implementation plan was created to provide transparency and coordination for the administration's National Cybersecurity Strategy (NCS). The NCS seeks to rebalance the responsibility to defend cyberspace by shifting the burden for cybersecurity away from individuals, small businesses, and local governments, and onto the organizations that are most capable and best positioned to reduce risks, according to a White House statement. Firms may face greater cybersecurity burdens as a result. The NCSIP details over 65 Federal initiatives (some completed, some ongoing, others planned for the future). Each initiative is assigned to a responsible agency and has a timeline for completion. There are five major “pillars” to the NCSIP: defending critical infrastructure, disrupting and dismantling threat actors, shaping market forces and driving security and resilience, investing in a resilient future, and forging international partnerships to pursue shared goals.
                                    • Phishing, business email compromise, and ransomware still rank among the most popular cyberattack techniques, but a mix of alternative attacks is increasing, according to cybersecurity and compliance company Proofpoint. “... many threat actors have shifted to techniques such as telephone-oriented attack delivery and adversary in the middle phishing proxies that bypass multi-factor authentication,” said Ryan Kalember, executive vice president of cybersecurity strategy at Proofpoint. “These techniques have been used in targeted attacks for years, but 2020 saw them deployed at scale.” About 76% of organizations surveyed by Proofpoint were targeted by a ransomware attack in 2022. About 64% of those targeted were actually infected. Only 50% of these organizations managed to retrieve their data after paying the ransom. A little over 66% of respondents reported to have had multiple, isolated infections.
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