Technology Outpacing Services

Despite the growth outlook, the IT services market will far from overtake the market for information technology products through 2019, according to the TBRC report.

The services market represents just 25.9 percent of all IT spending in 2016, and will advance by less than 1 percent – to 26.7 percent – in 2019, according to TBRC. The total IT market, estimated at $3.7 trillion this year, will grow to $4.1 trillion in three years, the report said.

But services are expected to grow at a CAGR of 4.7 percent, higher than a projected 3.4 percent for technology, TBRC said. It cited increased demand for services tied to software, BPO and cloud, plus hardware support services from health care, retail, and manufacturing companies.