The information technology (IT) services industry has seen tremendous growth in recent years, becoming a mainstay of the global economy. IT services companies help organizations of all sizes harness the power of technology to transform their operations, increase efficiency, reduce costs and keep pace with rapidly evolving customer demands.
According to Gartner, worldwide spending on IT services reached nearly $1.3 trillion in 2022, an increase of 5.5% from 2021. This growth is expected to continue as more industries undergo digital transformations.
The largest IT services companies play a crucial role in developing and delivering innovative solutions to clients across industries like finance, healthcare, retail, government and more. This article discusses the 10 biggest players in the IT services domain along with their key offerings, clients, financials and future outlook.
Industry Overview
The IT services industry consists of companies that provide organizations with consulting, implementation, IT support and management, infrastructure, system integration and other tech-focused services. These services allow businesses to optimize their technology usage instead of having large in-house IT departments.
IT services can be segmented into various categories:
- Consulting Services: Advisory services focused on tech strategy, implementations, improving processes etc.
- Systems Integration: Integrating disparate systems, software and infrastructure components.
- IT Outsourcing: Managing all or part of a client‘s IT operations like help desk services, infrastructure management etc.
- Business Process Outsourcing: Managing key business processes like finance, HR, supply chain operations.
The need for cost savings, better customer experiences, increased agility and reduced time-to-market are major factors driving spending on IT services. Advances in cloud computing, data analytics, AI/ML and other innovative technologies also enable new growth opportunities.
According to Gartner forecasts, enterprise IT spending on cloud-based offerings will account for over 21% of total IT spend by 2025.
Top 10 Largest IT Services Companies
Here are the 10 largest IT services companies in the world currently based on their market capitalization:
- Microsoft
- Accenture
- International Business Machines (IBM)
- Oracle
- Fujitsu
- SAP
- NEC Corp
- Synnex Corp
- Dell Technologies
- HCL Technologies
Next, let‘s discuss each of the top players in more detail including an overview of their offerings, clients, financials and outlook.
1. Microsoft
Headquartered in Redmond, Washington, Microsoft (NASDAQ: MSFT) is the world‘s largest software company with a current market cap of over $2.25 trillion.
While best known for its Windows operating systems and Office productivity suites, Microsoft also provides a vast range of enterprise IT solutions including:
- Azure: A leading public cloud computing platform
- Microsoft 365: Hosted services for productivity, email, file storage/sharing
- Dynamics 365: Cloud-based ERP and CRM applications
- Power Platform: Low-code/no-code development tools
- Windows Server: On-premises server OS for infrastructure
- GitHub: Development platform for software developers
A key growth driver for Microsoft is its Azure cloud platform. Microsoft reported over $23 billion in Azure/other cloud services revenue in 2022.
Some major Microsoft clients include Walmart, AT&T, Chevron, 3M, FedEx, General Motors, Johnson & Johnson among many others.
For fiscal year 2022 ending June 30, Microsoft posted record revenue of $198.3 billion, up 18% year-over-year along with net income of $72.7 billion.
The company expects double-digit revenue growth for the next fiscal year based on strong cloud demand.
2. Accenture
Based in Dublin, Ireland, Accenture plc (NYSE: ACN) is a leading global IT services firm serving clients across 120+ countries. The company has over 624,000 employees and generated nearly $61 billion in revenue for fiscal 2021.
Here is an overview of Accenture‘s key IT services areas:
- Consulting: Strategy, technology advisory, operational improvement consulting
- Technology: Cloud, security, blockchain, quantum computing, AI services
- Operations: Managed services, infrastructure, cloud ops, security ops
- Industry Focus: Retail, finance, healthcare, utilities, communications etc.
Accenture works with 91 companies from the Fortune Global 100 including household names like Microsoft, Apple, Google, Amazon and more.
For fiscal 2022 (Sept year-end), Accenture reported record bookings of $65 billion amid strong demand growth across geographic markets and industry groups. Profit was $6.9 billion on revenue of $63.7 billion.
Accenture continues to invest significantly in innovative capabilities to help clients realize greater value. Recently, the company unveiled a $3 billion investment over 3 years focused on metaverse, AI, cloud and other emerging tech.
3. IBM
International Business Machines Corp (NYSE: IBM), headquartered in Armonk, New York, had 2021 revenue of $57.4 billion. IBM has one of the longest track records in tech, having been founded in 1911, and currently employs around 282,000 people serving clients in 175+ countries.
Some major service offerings from IBM include:
- Hybrid cloud solutions
- Artificial intelligence
- Quantum computing
- Cybersecurity
- Blockchain
- Digital business transformation advisory & delivery
IBM serves major companies across industries like Cardinal Health, Thomson Reuters, BNP Paribas, Lufthansa, Delta Airlines among others.
In 2022, IBM continued to evolve its business mix with further growth expected from the hybrid cloud and AI opportunity. The company‘s hybrid cloud revenue grew 21% year-over-year to $22.4 billion for 2022.
Going forward IBM aims to enhance shareholder value from spin-off business Kyndryl which focuses on managed infrastructure services.
4. Oracle
Oracle Corp (NYSE: ORCL) is a leading global provider of enterprise cloud applications, database management systems and infrastructure software products. Headquartered in Austin, Texas, Oracle earned $42.4 billion in its fiscal 2022.
Oracle sells database software and technology, cloud engineered systems, and enterprise software products to businesses of all sizes and government agencies. Some key offerings are:
- Oracle Cloud Infrastructure (OCI)
- Autonomous Database for cloud deployments
- Human Capital Management (HCM) solutions
- Enterprise Resource Planning (ERP) suites
- Supply Chain Management (SCM) & Manufacturing
- Advertising & Customer Experience (CX)
Notable Oracle customers include major banks, telecom providers, healthcare organizations, retailers and technology companies.
In 2022, Oracle‘s Cloud services revenue grew 46% year-over-year to $13.8 billion. Strategic back-office cloud applications also saw strong adoption among clients.
Going forward Oracle aims to maintain momentum as more businesses transition enterprise workloads to the secure Oracle public cloud.
5. Fujitsu
Fujitsu Limited, headquartered in Tokyo, Japan, delivers IT products, services and solutions to clients in over 100 countries. For fiscal 2022 ending March 31, Fujitsu generated revenue of $37.7 billion.
Key offerings span:
- Consulting and system integration
- Infrastructure delivery solutions
- Product support services
- Managed services
In particular, Fujitsu has extensive capabilities around mission-critical computing infrastructure and high-performance computing used by organizations globally.
Major Fujitsu customers include retail giant Tesco, BNP Paribas, Volkswagen, NHS National Services and many government entities.
Despite macro uncertainty, Fujitsu expects continued technology investment trends around digital transformation, open innovation and sustainability initiatives to underpin medium-term demand. The company aims to enhance shareholder value while fulfilling wider social responsibilities.
6. SAP
SAP SE (NYSE: SAP) is a leader in enterprise application software serving 180+ countries. Founded in 1972 and now headquartered in Walldorf, Germany, SAP helps companies streamline back-office functions. SAP has over 118,000 employees globally.
Core SAP offerings fall into two main categories:
- Applications, Technology & Services: SAP S/4HANA ERP suite, Customer Experience (CX), Human Experience Management (HXM), business process intelligence, database & data management offerings etc. delivered on-premise or via cloud.
- Industry Cloud Solutions: Pre-configured cloud-based solutions tailored for key industries – utilities, manufacturing, oil/gas, defense & security, retail etc.
Top SAP clients include around 80% of Forbes Global 2000 enterprises like Samsung, Shell, Nokia, Procter & Gamble and Total.
For 2022, SAP delivered €30.9 billion in cloud & software revenue representing 17% year-over-year growth. High demand for SAP‘s "RISE with SAP" service extension offerings indicates strong appetite from firms to accelerate cloud migrations.
Looking ahead, long-term market trends around automation, real-time data capabilities and sustainability benchmarks present growth runways for SAP to enable organizational transformations via intelligent technologies.
7. NEC Corporation
Tokyo, Japan based NEC Corporation (OTCMKTS: NIPNF) is a leading global integrator of IT solutions leveraging expertise honed over 140+ years. NEC provides solutions for carrier/service provider, enterprise and government customers in over 190 countries.
Major offerings span areas like:
- Core network infrastructure for telecom networks
- Cybersecurity solutions
- Biometrics & surveillance analytics
- Supercomputing platforms
- Cloud and 5G offerings
- Blockchain platforms
- Digital finance & payments
NEC works with leading telecom carriers, financial institutions, logistics firms, retailers and smart city projects worldwide. Key partners include Oracle, Salesforce, AWS and Microsoft Azure.
For the fiscal year ending March 2022, NEC delivered consolidated revenue of $20.7 billion. With growing investment around 5G infrastructure globally, NEC sees significant opportunities to enable smarter societies by connecting people, processes and infrastructure.
8. Synnex Corp
Based in Fremont, California, TD SYNNEX Corp (NYSE: SNX) is a leading IT distributor and solutions aggregator for the IT ecosystem. Created in 2021 via the merger of SYNNEX Corp and Tech Data, the company has over 22,000 employees worldwide.
TD SYNNEX helps technology vendors access a broader universe of channel partners to increase their market footprint cost-effectively. The company also has extensive expertise in third-party logistics and deliver specialized value-added services.
For its fiscal 2022 ending November, TD SYNNEX reported record revenue of $62.8 billion driven by strong demand in major markets like enterprise and telecom software, cloud, mobility, IoT, security and analytics.
Key tech partners include heavyweights like Microsoft, HP, Cisco, IBM, Dell, Lenovo, Adobe, AMD, Intel, NVIDIA, Samsung and Apple among others across software, hardware and peripheral domains.
Going forward, TD SYNNEX aims to enable partners in areas like next-gen infrastructure, AI/ML, process automation, edge computing and IoT analytics to tap accelerating market opportunities.
9. Dell Technologies
Dell Technologies Inc. (NYSE: DELL), headquartered in Round Rock, Texas is a globally trusted technology conglomerate offering advanced computing, storage and software-defined data center solutions. Founded in 1984 by Michael Dell, the company has 165,000+ employees.
Major lines of business include:
- Client Solutions Group: Laptops, desktops and workstations
- Infrastructure Solutions Group: Servers, storage, networking, hyperconverged infrastructure
- VMware: Virtualization software and cloud computing services
Dell maintains strong footholds within commercial businesses and government agencies relying on mission-critical enterprise IT deployments on-premise or via hybrid/private cloud models.
For FY 2022 (ending Jan), Dell Technologies reported record revenue of $101.2 billion, up 17% year-over-year driven by consistent commercial PC demand and double-digit infrastructure order growth.
The spun-off VMware business continues to gain traction expanding partnerships with major public cloud vendors to accelerate enterprise use cases around app modernization and multi-cloud agility.
10. HCL Technologies
Noida, India-based HCL Technologies Limited (NSE: HCLTECH) is a next-generation global technology company delivering IT and business services like cloud, digital and engineering consulting. Founded in 1991, HCL has over 211,000 professionals serving Fortune 500 corporations across industry verticals in 52 countries.
Core capabilities and service offerings encompass:
- Applications: Custom app development, ERP services, digital process automation
- Infrastructure: Hybrid cloud, digital workplace, cybersecurity
- Engineering and R&D: Internet of Things, platform engineering, 3D printing
- Consulting: Data analytics, cloud transformation, marketing technology
Notable HCL clients include Hewlett Packard Enterprise, Conagra Foods, Fifth Third Bank, London Stock Exchange Group, Misys and Aer Lingus.
For the year ended June 2022, HCL Technologies posted consolidated revenue of $11.48 billion, rising 19% year-over-year aided by market share gains through participation in large transformational deals globally.
Industry Trends and Outlook
Several key trends are shaping the competitive landscape for leading IT services players:
Accelerated Cloud Adoption: Client appetite for hybrid multi-cloud solutions and managed cloud services will catalyze more public cloud partnerships and M&A activity.
Everything-as-a-Service: XaaS models like BPaaS, IaaS, PaaS, SaaS will dominate as cloud delivery mechanisms enabling scalable and flexible consumption.
Specialization at Scale: Developing distinctive capabilities around niche technologies like IoT, Cybersecurity, Networking, AI/ML etc in focus industries.
Global Delivery: Expanding talent access and distributed agile development leveraging centers across the world.
ESG Prioritization: Climate change concerns prompting investments in energy efficiency, renewables adoption and sustainable IT practices aligned to ESG goals.
Gartner projects worldwide IT services spend to reach $1.8 trillion by 2025 based on a 2021-2025 CAGR of 7.9%.
As per IDC forecasts, the move towards digital-first economies will likely expand total global spending on digital transformation to over $2.8 trillion by 2025.
The accelerating pace of technology innovation and proliferation ensures leading IT services majors will continue playing an indispensable role in digital change journeys of businesses worldwide.
