The IT services industry comprises companies providing services to organizations to help them create, manage, deliver information, and help them streamline other business functions.
Such services are segmented into different types, such as software development, consulting, system integration, and hardware deployment/education.
The market for IT services consists of outsourcing, security services, managed services, cloud computing, and data management.
The IT services industry in the United States generates $1.8 trillion of U.S. value-added GDP, and 11.8 million jobs.
According to a report by CompTIA, the country has over 525,000 software and IT services companies, including suppliers of custom computer programming services, software publishers, etc.
According to the report by the U.S. Bureau Of Labor Statistics, the employment projection for computer and information technology in the United States is that it is expected to grow by 13% from 2020 to 2030. This means the employment growth in this sector is faster than the average for all occupations in the country.
The report forecasts that the IT services market in North America is expected to reach $660.9 billion by 2026, at a CAGR of 7.6%.
The proliferation of information technology in the United States stems from the desire of American corporations to make money, during the 1980s and 1990s. Top-notch companies, such as Intel, Microsoft , and Apple launched affordable computers, cellphones, and Internet technologies, along with a variety of electronics-based products.
The information technology (IT) industry became a huge market segment that developed around the production of new technologies, such as computers, electronic products, software publishing, and other products; like data processing services, and computer systems design.
As information technologies became widespread in offices and companies across the United States, their impacts on different other industries outside of the IT sectors were far-reaching.
For instance, financial industries witnessed a new-age innovation in terms of scanners and interconnected bank networks that helped them to reduce the number of paper checks in circulation daily. IT services benefited retail sectors in terms of streamlining the merchandise sale.
The presence of information technology in the US has been around since IBM (International Business Machines) started to produce computers on a large scale in the early 1950s. And it became a considerable part of the country’s economy in the 1990s. During the 1980s, big names in the IT companies, such as Microsoft and Dell dominated the market as commercial leaders in personal computers, Internet, and mobile phone technologies. The sale of these technologies went higher due to affordability and when the Internet (World Wide Web) became common in 1994.
The high-tech industry’s revenue witnessed unprecedented growth. For instance, Microsoft made a sale of a whopping $140 million in 1985. A decade later, its revenue reached $6 billion. In a similar context, Cisco Systems also witnessed tremendous growth in its revenue from the sale of $69 million to $22 billion between 1990 and 2001.
Dell remained the top seller of home computers in the U.S. market. The company’s sale in 1989 was $300 million which reached $61.1 billion in fiscal year (FY) 2008. The stocks of Microsoft and Dell doubled in value from late 1998 to early 2000. Amidst some serious challenges like layoffs in the IT industry between 2000 and 2002, the sector showed signs of recovery, as business spending on IT equipment began to pick up the pace.
The gross revenue output of information, communications, and technology-producing industries were $1,022.6 billion by 2006. Top tech giants like Google and Apple earned revenues above what they expected between 2003 and 2008 (Apple with $24 billion in 2007, and Google with $16.6 billion in 2007).
In this section, we are discussing some recent updates and trends taking place in the IT services industry in the United States. The purpose here is to provide brief information about key things influencing the IT industry market as a whole and their implications in the future for the industry.
The tech market in the United States is considered to be the largest across the world. It represents 32% of the entire or about $1.7 trillion.
The tech sectors in the U.S. play an instrumental role in accelerating the growth of the country’s economic activity, as it outperforms other industries (e.g. retail, construction, etc.) in terms of the economic impact of the country measured as a percentage of gross domestic product.
With the IT industry market becoming strong and matured, and technological innovations reaching the next level, it stands to reason as to why IT professionals should feel optimistic about the future prospects of the industry.
About 86% of IT pros in the country’s different geographies rate their outlook as very good or fairly good. The key reason behind the growing positive sentiment is attributed to the demand for technology skills going higher, resulting in the availability of robust career options for IT professionals.
Moreover, the role of technology in fulfilling the business objectives also underscores the importance of technology as an integral part of streamlining business operations.
In-demand skills and the role of IT technology in helping businesses accomplish their objectives are said to be a prime catalyst in driving the future sentiment for growth in the IT industry in the U.S.
Cloud-based services in the IT industry are witnessing gainful results due to a major breakthrough in cloud computing over the past few years. The role of IT services for organizations adopting cloud computing is analyzing all executions, applications, and network connections to help them from getting exposed to substantial risks like identity theft, etc.
Innovations made in the IT operations across the cloud-based platform also gave birth to the increasing importance of IT services to be more data-driven and real-time, helping companies to experience greater value for their business in the areas of operational efficiency, remote access optimization, and finding new business opportunities.
Like all the industries which suffered terribly from the pandemic-induced impacts, supply chain disruptions in the IT industry were also an ugly fallout of the pandemic.
However, as the tech companies are recovering from the supply chain disruptions, they are now focusing on how proactively to handle the unforeseeable and other systemic threats by building systems reinforced with better resiliency.
The growth of the healthcare vertical regarding the adoption of new-age technologies under IT services is huge. Services like networking development-integration-maintenance, Information Security, software development-integration-maintenance, and web applications are pushing the growth of the healthcare vertical.
The increased IT spending also bolstered the growth of this vertical, making it a frontrunner in the market. Factors like the increasing purchasing power of consumers and the concentrated focus on satisfying customer expectations are some of the driving forces behind customer retention and new customer acquisition in the industry.
Speaking in terms of IT Service offerings adoption, the United States is said to be the most mature market.
Several factors are substantiating the above statement, like the presence of companies with sophisticated IT infrastructure, and technical expertise readily available to streamline business operations.
Innovations in emerging technologies, the Internet of Things (IoT), and modern IT infrastructure services have inspired many companies to adapt to IT service offerings in the country.
In this section, we are highlighting the importance of IT services franchises and opportunities for business persons or entrepreneurs to help them in the path to franchise ownership.
The IT services franchise stands as a viable opportunity for business persons or entrepreneurs to help them explore the exciting opportunity of being their boss.
Moreover, an IT services franchise can be a good start for your business to become a more successful entrance to the market due to the supports it provides, such as large resources, knowledge, business assistance, brand recognition, lower failure rate, and lucrative growth in the long run.
To determine which franchise is right for your IT services business, choose the one offering long-term growth.
Measure your financial capacity to start a business, take a look at the market, research it and make sure you have identified the markets with the greatest opportunities conducive to your business interest.
Interview your franchisor as if the life of your future business depends on it.
Be familiar with the cost of buying a franchise, including fees, and scope of franchisor control.
We are listing some IT services franchises below to help you choose the right franchise best suited to your interests.
American Council for Technology and Industry Advisory Council was founded as a non-profit public-private association. The purpose of the group is to help improve government and industry through the application of information technology by providing a forum allowing them to exchange information and collaborate on issues related to technology in the public sector.
The Chamber of Progress was brought to existence as a trade group or a tech industry coalition in the United States. It represents technology companies. The mission of the group is dedicated to the economy, workforce, progressive society, and consumer climate by supporting public policies to foster a more inclusive environment accommodating all people from technological advancements.
The Computing Technology Industry Association (CompTIA) was founded as a non-profit trade association, representing the $5 trillion global information technology ecosystem, apart from being the voice of nearly 75 million industry and tech professionals who contribute to empowering the world’s economy. The association contributes to industry growth by developing a skilled workforce and creating an environment fostering innovations through education, training, certifications, philanthropy, and market research.
Consumer Technology Association is a trade association founded on April 16, 1924. Headquartered in Arlington, Virginia (U.S.), it is representing more than 2,200 consumer technology companies in the country. It is the voice of $422 billion U.S. consumer technology industry. The association symbolizes itself in ideas as a driving force to keep moving. It educates U.S. policymakers to ensure that the laws and regulations don’t hamper the growth of innovation economy in all sectors in the country.
CTIA was founded in 1984 as a trade association based in the United States. It represents wireless communications industry like wireless carriers and suppliers, and manufacturers and providers of wireless products and services. CTIA is headquartered in Washington, D.C.
Federation of Internet Solution Providers of the Americas was founded in 1996 as an association of internet service providers under the name Florida Internet Solution Providers Association. Its members are committed to serving in terms of streamlining online and networked operations. Based in Matthews, North Carolina, the association is composed of a rich cross-section of industry leaders. It helps its members with education in industry trends and advocating regulatory issues that affect their business.
William Henry Gates III is a business magnate in America. He was born and raised in Seattle, Washington. He is also an author, investor, software developer and philanthropist. Among many notable things in his life, co-founding (with his late childhood friend, Paul Allen) Microsoft is one of them. In his initial career with Microsoft, Bill was working there as its chairman, president, chief architect, and CEO. Bill is credited to be highly influential personality who brought forth the microcomputer revolution of the 1970s and 1980s. Bill was just 13 when he wrote his first software program. In the Scholastic Aptitude Tests (SAT), Bill’s score was 1590 out of 1600. He enrolled at t Harvard College in 1973. He left Harvard after two years. With his hometown friend, Paul Allen, Bill co-founded Microsoft (a combination of "microcomputer" and "software",) on April 4, 1975. The first employee they hired was their high school collaborator Ric Weiland. The company launched Windows 1.0 in 1985. Windows 95 was launched in 1995. Bill stepped down as a chairman from Microsoft in 2014. According to the Bloomberg Billionaires Index, Bill was the highest-earning billionaire in the world, in 2013. Today, Bill co-chairs the Bill & Melinda Gates Foundation with Melinda French Gates.
The IT industry in the United States, based on the report, says that was appreciated worth of $1.6 trillion. Moreover, the projected growth rate of the industry is between 1.9% and 5.4%. To continue the pace of growth for the industry, the market players will have to attract customers looking for brand new IT solutions. Because of the pandemic-induced impacts in all the U.S. industries, the growth rate of IT industry has also experienced a certain degree of deceleration. However, the market sentiment is quite optimistic due to higher demand in remote working, stronger IT networks and innovations in technology indicating brighter future for IT industry expansion in the future.
Therefore, the role of small business loans for IT services projects golden opportunities for entrepreneurs and business persons. Many traditional and private lenders in the United States are offering affordable small business loans for IT and technology companies. From SBA loans to non-government funding, the options for getting a hand on a financing for your IT business are aplenty.
In this section, we are sharing some useful information about some top IT-related business loans to narrow down your research for the best loan product that makes sense for your business.
The mission of Small Business Administration (SBA) Loans is to assist small business companies and entrepreneurs across the U.S. and address their business concerns, along with boosting the overall economy of the country.
The SBA 7(a) financing is one of the most popular loan products due to its use-case flexibility, great terms, and sizeable funds at the lowest interest rates and longest repayment terms. Under this loan program of SBA, one can receive up to $5 million for their business needs.
Acquiring SBA 7(a) financing is competitive, given strident eligibility criteria, one of them being a strong borrowing background and steady finances of the borrower. This explains why doctors are usually strong candidates for SBA 7(a) loans.
The SBA loan timeline can extend up to weeks or even months.
It involves a great deal of paperwork, especially for borrowers lacking organized financial records. For this reason, the SBA loan is not an ideal recommendation to the borrowers looking for quick finance.
Fund your business expenses, address unforeseeable emergencies, or buy equipment. The loan you get has a fixed credit limit, allowing you to make multiple draws as needed within the credit limit.
These types of financing options have flexibility and cost-effectiveness. They are one of the best medical practice loans for doctors and specialists with fluctuating expenses.
Traditional bank loans could be a great financing option if you are a qualified borrower. Some banks can even offer you loan products specifically designated for IT-related business financing.
When it comes to receiving loans from traditional lenders, borrowers are supposed to be highly creditworthy with excellent financial pasts. In most cases, approval is not guaranteed, even though you stand qualified for their specialized loan products. And if the loan is approved anyhow, it will take a few months before you obtain the funds.
Equipment financing is a viable financial solution to purchase specific equipment for IT-related businesses. The equipment you purchase through the loan will be used as collateral for the loan itself. This means no down payment or collateral to your lender.
It allows you to break down the cost of expensive equipment into a supportable payment option that you can manage.
Because of problems related to acquiring medical practice loans from lenders with strict eligibility criteria, most borrowers turn to alternative lenders, someone with relatively more flexible lending criteria.
In regard to medical practice business loans, Funderial has been an excellent resource for lending. Since 2010, this BBB Accredited Business remains a leader in the lending market assisting over $1 billion dollars in lending to small to midsize businesses providing them with flexible lending /repayment options specific to their needs.
For IT businesses to run successfully, timely financial assistance is one of the most important things to manage cash flow, cover daily operational expenses, including but limited to equipment expenses, together with new equipment upgrades, maintaining older equipment, acquiring a new practice, expanding a current business, handling marketing/advertising costs, managing payroll, etc.,
This is where loan companies like Funderial come into the picture, extending a broad variety of loan options for small and medium-sized businesses, at attractive terms through in-house financing models, as well as the offer of reliable lending partners across the United States.
To help you operate your business and maintain its sustainable growth, we have a host of unique financing options at affordable rates and easy terms, with instant approval timespan, and quick turnaround funding.