According to a new forecast from the International Data Corporation(IDC), IT Services and Business Services revenues are poised to pass the $1 trillion mark for the first time in 2018. Among all others, cloud-related services spending is expected to reach more than $98 billion by the end of 2016.
According to IDC, with more than $100 million worth of spending each this year, the largest services markets will be Key Horizontal Business Process Outsourcing (BPO) and Systems Integration Services, which will also generate the largest revenue pools over the 2016-2020 forecast period. Business Consulting Services is forecast to outpace both markets in terms of growth.
IDC forecasts that worldwide services spending totals for 2016 are expected to stay within the $900 billion range and by 2020 expected to near $1.1 trillion.
On a geographic basis, the United States is expected to generate the largest percentage of services spending throughout the forecast period, followed by Western Europe. The fastest growing regions will be Latin America, then the Middle East and Africa (MEA), which is poised to surpass Canada's services spending by 2017. Among the major global regions, Asia/Pacific (including Japan) is forecast to have the highest overall growth rate.