IHL: The fastest growing IT spend areas are...
As they compete in an increasingly digitally-influenced marketplace, retailers are stepping up their IT investments.
Retailers are expected to spend over $183 billion on IT solutions in 2018, according to “Retail IT Market Leaders – Competitive Profiles.” The study, from IHL Group, analyzes opportunities for IT services in the retail and hospitality markets.
Systems integration remains the single largest category of spend in services, garnering more than $27 million in investments. But the fastest growing areas over the next five years will be digital transformation (+224%), strategic IT consulting (+184%) and IT outsourcing (108%).
The services that are gaining the most attention include application development, systems integration, infrastructure-as-a-service (IaaS), and software-as-a-service (SaaS).
"The rapid retail transformation being forced by Amazon and Walmart, combined with scarcely available IT talent, is forcing retailers to increasingly look to outside partners for IT services," said Greg Buzek, president of IHL Group. "This is specifically true in the areas of digital transformation, strategic IT consulting and general IT outsourcing, all of which we will see triple digit growth rates over the next five years."
The data from the report coincides with ongoing growth in the retail IT services market, which is on pace to grow between $31.4 billion and $117 billion annually by 2021, according to “ At Your Service: Retail IT Services Market Study,” also from IHL Group.
Retailers are expected to spend over $183 billion on IT solutions in 2018, according to “Retail IT Market Leaders – Competitive Profiles.” The study, from IHL Group, analyzes opportunities for IT services in the retail and hospitality markets.
Systems integration remains the single largest category of spend in services, garnering more than $27 million in investments. But the fastest growing areas over the next five years will be digital transformation (+224%), strategic IT consulting (+184%) and IT outsourcing (108%).
The services that are gaining the most attention include application development, systems integration, infrastructure-as-a-service (IaaS), and software-as-a-service (SaaS).
"The rapid retail transformation being forced by Amazon and Walmart, combined with scarcely available IT talent, is forcing retailers to increasingly look to outside partners for IT services," said Greg Buzek, president of IHL Group. "This is specifically true in the areas of digital transformation, strategic IT consulting and general IT outsourcing, all of which we will see triple digit growth rates over the next five years."
The data from the report coincides with ongoing growth in the retail IT services market, which is on pace to grow between $31.4 billion and $117 billion annually by 2021, according to “ At Your Service: Retail IT Services Market Study,” also from IHL Group.