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 45,400 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 22-23 workers, and generates about $4-5 million annually.
- The computer system design services industry consists of about 45,400 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
Dec 3, 2022 - Tech Sector Layoffs Increase As Economy Weakens
- Around 210,000 tech employees have been laid off in 2022 through November, with 40% of the layoffs coming in the fourth quarter, according to a Jefferies analysis of data provided by TrueUp. The average company in its internet and software coverage universe has 36% fewer job listings now than at the start of the year. Lead analyst Brent Thill said that it’s a signal of the “excess” that tech brought on during a “period of easy money.”
- A growing talent pool isn’t likely to lead to a full-blown hiring boom, according to Pitchbook senior analyst Kyle Stanford. “Even well-funded companies will be more strategic in their hiring practices than we would have seen a year ago,” Stanford said. Large tech companies cutting jobs because of the souring economic climate “should be a warning to small companies to preserve runway and opt for a sustainable growth, if growth is still possible,” he added.
- Hackers are turning to traditional IT remote monitoring and management tools to execute cyberattacks on businesses and other organizations. Legitimate monitoring and management tools used by organizations including computer system design services are being used by hackers to discover client-side applications and to conduct exploitation/post-exploitation activities. “The problem of course, is their effectiveness for legitimate security professionals make them effective for cybercriminals who crack them to remove any licensing requirements to use for free,” according to Chris Clements, vice president of solutions architecture at cybersecurity firm Cerberus Sentinel. “There are numerous hacker malware packages that are great for controlling computers, but they run the risk of being detected and removed by endpoint protection tools like anti-virus software and endpoint detection and response software,” Clements said. “Remote monitoring and management tools by and large eliminate this possibility as they are very often deployed for legitimate IT administration purposes.”
- Robot sales in North America hit a record high in Q2 2022, according to the Association for Advancing Automation (A3). Computer systems design services are likely to benefit from the need to expand and/or adapt existing computer systems to include robot control systems. Sales growth was driven by a resurgence in sales to automotive companies and ongoing e-commerce logistics automation. About 59% of the 12,305 robots sold in Q2 2022 went to the automotive industry, with the remaining orders largely in the food & consumer goods industry, which saw a 13% year-over-year increase in unit orders. “While this quarter shows a marked shift back to historic norms with more robots going to automotive than to any other industry, the continued growth of robotics in food & consumer goods companies especially demonstrates the ongoing need to automate warehouse logistics for handling the exploding growth of e-commerce," said A3 President Jeff Burnstein.
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