The workplace services market consists of products and services that allow an organization’s workforce to work from anywhere at any time in a protected environment. More specifically, this industry includes end-user outsourcing and tech support services that automate service, integrated support, and cloud support services to end-users. The entire market was valued at $88 billion after seeing strong growth for many years as organizations have migrated online.
As an ever-changing industry, the workplace services market offers opportunities for both big companies and newer startups. Both groups are among the market’s most prominent players, which include American multinational companies IBM, DXC Technology, Unisys, CompuCom, a subsidiary of Office Depot; Indian multinational companies Wipro, Tata Consultancy Services, and HCL Technologies; Japanese multinational company NTT Data; French multinational company ATOS; and Irish multinational company Accenture.
How the COVID-19 pandemic was weathered varies from company to company, with some experiencing a temporary knock and others major growth. DXC Technology, for example, saw its yearly revenue fall from over $20.7 billion to $19.58 billion. Meanwhile, Unisys saw its non-GAAP net income grow to $74.8 million from $61.2 million in 2018. Non-GAAP diluted earnings per share were also up 6.7% from $1.05 in 2019 to $6.7.
Though companies had different experiences through the pandemic, the workplace services market as a whole is expected to benefit from some major momentum. Industry analysts predict the market will expand by a compound annual growth rate (CAGR) of 10.6% between 2021 and 2028, which is a significant number. By the end of the forecast period, the market will have reached $193.4 billion in value, amounting to a nearly 120% increase in value in just seven years.
Factors Driving Growth
Growth is expected to be driven by changes across all industries that have been unfolding for many years. Namely, the increasing necessity of a single point of connection to manage IT-related concerns for companies in the modern day is expected to facilitate interest in workplace services.
However, the COVID-19 pandemic is also expected to play a role, according to the report. “The COVID-19 pandemic has propelled businesses to boost their digital transformations, which results in the eradication of traditional barriers to progress,” the market analysis reads. As a result, companies are modernizing and migrating applications to the cloud, which is leading to more interest in the workplace services market — and more opportunities for leading companies. Cybersecurity and IT resiliency will also only continue to be more important considerations for companies, suggesting the importance of this industry won’t go away any time soon.
About the Author
Jemima is a journalist who enjoys reporting on business, particularly small business and entrepreneurship.