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
Sep 3, 2024 - Cybersecurity Issues Intensify
- 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.
- Global merger and acquisition (M&A) activity decreased 15% year over year during the second quarter of 2024, according to GlobalData. Computer system design services may be negatively impacted as M&A activity drives demand for computer systems design, development, and integration. The combination of high interest rates, current valuations, and political uncertainty have negatively impacted M&A activity, according to GlobalData, but a rebound may begin before the end of the year. "Prospects of rate cuts in certain markets and an overall improving global growth outlook could drive increased activity," said Priya Toppo, Analyst at GlobalData's Thematic Intelligence. "However, mega deals will continue to face significant challenges, especially in the US, where antitrust concerns are a key focus for regulators.”
- 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.
- Computer system design industry employment decreased slightly during the first six months of 2024 while average wages for nonsupervisory employees increased slightly, according to the US Bureau of Labor Statistics. 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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