The information technology (IT) services sector has emerged as a key driver of global economic growth, with worldwide spend expected to reach $1.8 trillion by 2025. As enterprises undertake large-scale digital transformation and harness next-gen technologies like cloud, AI/ML, IoT and cybersecurity – demand for IT services tailormade to business needs shows no signs of abating.
Leading IT service providers have captured this market through their technical expertise, extensive resource pool and global delivery capabilities. Some even offer end-to-end intelligent platforms that integrate mature and bleeding-edge solutions to generate enhanced efficiency, insights and experiences for clients.
This blog features the 10 largest IT services powerhouses based on their market dominance and financial performance.
Size of the Global IT Services Pie
Let‘s first understand the breakup of the IT services market:
| Segments | Share |
|---|---|
| IT Consulting & Implementation | 30% |
| Managed IT Services | 25% |
| Business Process Services | 20% |
| Application Development & Testing Services | 15% |
| Hardware Support Services | 10% |
The largest segment is consulting and implementation services that enable enterprises to strategize and roll out digital solutions tailored to their environment.
As per market research firm Statista, global expenditure on IT services amounted to US$1.3 trillion in 2021. The graph below shows how spending has grown consistently over 2016-2021 despite economic and political upheavals like the US-China trade war.
With digital intensity only expected to rise across sectors in the coming decade, IT service providers are ramping up their portfolio and global delivery machinery to maximize market share.
Now let us look at 10 leading global corporations that define this sector.
10. Cognizant Technology Solutions
Headquarters: Teaneck, New Jersey, USA
Founded: 1994
Employees: 343,500
Revenue (2021): $18.5 billion
Net Profit (2021): $1.6 billion
Services Portfolio: Digital business, application development, infrastructure management, BPM
This Fortune 500 MNC has its Global Delivery Centers spread across India, China, Philippines, Mexico, Poland and the USA. Top clients are JPMorgan Chase, Facebook, ING, Biogen, Verizon and more.
Cognizant has made nine acquisitions since 2020 focused on strengthening capabilities in cloud, data, AI and digital engineering. The recent buyout of Texas-based digital transformation firm Avanade Inc. for $8.5 billion will expand Cognizant’s footprint in the Microsoft cloud solutions space.
9. Infosys
Headquarters: Bangalore, India
Founded: 1981
Employees: 345,218
Revenue (2023 Q3): $4.7 billion
Net Profit (2023 Q3): $0.7 billion
Services Portfolio: Application development, infrastructure management, product engineering, data analytics, business process management
With its Global Delivery Model, Infosys has centers across Europe, Americas and APAC – bringing skills closer to clients while optimizing operations.
Long-term partners include German automaker Daimler AG, US clothing retailer Gap Inc, French investment bank Societe Generale and Japanese financial holding firm Mizuho.
Recent acquisitions– Blue Acorn iCi Inc, oddity; GuideVision– boost capabilities in customer experience, Salesforce offerings and cybersecurity respectively.
8. Capgemini
Headquarters: Paris, France
Founded: 1967
Employees: 358,000
Revenue (2021): €18.2 billion
Net Profit (2021): €1.2 billion
Services Portfolio: Consulting, technology, operations services focused on cloud, data AI/ML, intelligent industry, customer experience, sustainability
This French professional services firm serves over 50% of Fortune 500 companies including Airbus, BASF, Nestle, Orange, Ford, AXA across energy, manufacturing, retail, telecom and other industries.
Capgemini has made six strategic acquisitions since 2021, including technology innovation firm Anaxi, digital consultancy solutions Green ASUS, and Australian cloud services provider Empired Ltd.
7. NTT Data
Headquarters: Tokyo, Japan
Founded: 1967
Employees: 139,000
Revenue (2021): $3.8 billion
Net Profit (2021): $801 million
Services Portfolio: Consulting, application development, managed services focused on digital, cloud, security.
With its ‘Digital to the Core’ vision, over 60% of NTT Data services now cater to digital transformation initiatives of clients like Mapfre, Mizuho Financial, Dell, Airbus and more across sectors ranging from automotive and manufacturing to banking.
Two major moves since 2021– acquisitions of Nexient and Chainalysis for $500+ million– boost capabilities in cloud-native applications using scalable platforms and blockchain respectively.
6. Fujitsu
Headquarters: Tokyo, Japan
Founded: 1935
Employees: 132,480
Revenue (2022): 3,576 billion JPY / $28.2 billion
Net Profit (2022): 236 billion JPY / $1.8 billion
Services Portfolio: Hybrid IT, hyperautomation platforms and solutions, quantum inspired computing
Over 50% of revenue comes from IT solutions targeting key social issues like achieving sustainability goals. Fujitsu’s global clientele includes retail giant Marks & Spencer, food processing firm Ocado Group, aircraft engine manufacturer Rolls Royce and mining technology company Komatsu Ltd.
Through its Digital Annealer quantum computing servers (launched 2018), Fujitsu leads in commercialization of next-gen supercomputing for business scenarios.
5. Accenture
Headquarters: Dublin, Ireland
Founded : 1989, originally as a consulting division of Arthur Andersen
Employees: 721,000
Revenue (2021): $50.3 billion
Net income (2021): $6.2 billion
Services Portfolio: Strategy, technology and business consulting services focused on intelligent platforms, Industry X.0, sustainability, metaverse for the future
This Fortune Global 500 firm serves clients across 200+ cities in 120 countries, including about 90 of the top 100 companies globally. Key sectors are financial services, healthcare, tech and utilities.
Since Sept 2021, Accenture acquired 27 companies to boost capabilities in cybersecurity, supply chain resiliency, sustainability, Industry 4.0 solutions and salesforce industry cloud technology.
4. Oracle
Headquarters: Austin, Texas, USA
Founded: 1977
Employees: 160,000
Revenue (2021): $40 billion
Net Income: $6.7 billion
Services Portfolio: Cloud engineering systems including enterprise software suites, databases, server and storage solutions mostly geared towards larger enterprises
This software giant operates across 175 countries globally. Clients range from Zoom, Slack, 8×8, Verizon, Box to Electrolux, General Motors and Bank of Italy.
Recent moves to sharpen cloud competencies and expand clientele base beyond North America resulted in acquisitions like Cerner Corp. (health IT provider), Opower (cloud provider for utilities) and Addison (AI-based digital marketing service provider).
3. SAP
Headquarters: Walldorf, Germany
Founded: 1972
Employees: 115,000
**Revenue (2021): €27.8 billion / $31.974 billion
Net Income: €5.4 billion / $6.2 billion
Services Portfolio: Enterprise application software and services across ERP, CRM, business intelligence, procurement, cybersecurity and supply chain management.
This European conglomerate serves 440,000 clients across 25 industries globally. Customers include Colgate Palmolive, ExxonMobil, Google, Accenture, Coca Cola and Kaplan.
SAP plans to expand its offerings on enterprise workflow automation, business process intelligence and sustainability management riding on the SAP Business Technology Platform.
Recent acquisitions of Taulia (supply chain financing) and RE:Analyzer (workflow intelligence) take total buyouts since 2021 to seven deals.
2. IBM
Headquarters: Armonk, New York, USA
Founded: 1911
Employees: 280,000
**Revenue (2021): $57 billion
Net Income: $5.7 billion
Services Portfolio: IT infrastructure, hybrid cloud, AI capabilities focusing on automation, security and sustainability across industries
IBM serves clients across 175 countries globally including Spanish multinational utility company Iberdrola, Bank of America and Kroger.
Key acquisitions recently are Neudesic (hybrid multi-cloud services), ReaQta (automated endpoint security) and Randori (attack surface management and offensive security).
With impact of forex woes and drop in legacy infrastructure demand, IBM targets $60 billion in revenue including $20 billion in hybrid cloud sales by 2025.
1. Microsoft
Headquarters: Redmond, Washington, USA
Founded: 1975
Employees: 221,000
Revenue (2021) – $168 billion
Net Income (2021) – $61 billion
Service Portfolio: Software and cloud solutions including productivity and messaging tools, enterprise business solutions, gaming, PC and devices
This undisputed tech titan serves businesses across manufacturing, retail, healthcare including giants like Adobe, Coca-Cola, Toyota, ExxonMobil, Walgreens Boots Alliance.
Microsoft employs over 200,000 engineers and developers that drive its competitiveness on intelligent cloud solutions and infrastructure including Azure (second biggest after AWS) as well as software like Microsoft 365 and Power Platform.
Acquisitions like Nuance Communications (AI), RiskIQ (cybersecurity), Activision Blizzard (gaming) aim to tap growth opportunities across sectors.
Industry Outlook
As per Gartner, global IT spending is projected to total $4.5 trillion in 2022, an increase of 5% from 2021 reflecting large digital transformation investments.
With disruptions across sectors throwing open demand for agile tech infrastructure aligned to evolving priorities, these IT services majors are ramping up next-gen offerings leveraging AI/ML, IoT, VR/AR, blockchain and quantum computing.
Most predict at least 8-10% YoY rise in managed cloud services adoption – a sweet spot for leading players. Although economic stresses like rising inflation or dips due to Covid resurgence might momentarily slow down decision making.
Geopolitical factors like conflicts or trade protectionism also sometimes trigger business uncertainty or currency fluctuations that affect profitability.
Nevertheless, long-term market tailwinds coupled with these corporations’ global credentials, deep domain expertise and ability to provide end-to-end intelligent solutions across the IT stack means they will continue to shape and dominate the multi-billion dollar IT services sector.
