Procurement Market Intelligence Report

IT Support Services
Sourcing Guide & Market Intelligence

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IT Support Services Global Overview

Definition

Summary

Buyers of IT support services look to suppliers for outsourced technical support rather than employing an in-house IT team. Suppliers typically answer IT-related questions, provide ongoing monitoring to proactively fix technical problems, and resolve IT issues as they arise.

Global IT Support Services Procurement Trends

Discover the top international trends affecting procurement in the global IT Support Services market.

Warning Trends


Russian invasion of Ukraine is putting additional strain on US chip supply

  • Until recently, the United States sourced nearly all of its neon gas (an essential material in the laser imprinting process to produce semiconductors) from Ukrainian and Russian producers. Previous conflicts between the two nations, specifically related to the Crimea conflict in 2014, resulted in a nearly 600.0% increase in the price of neon.
  • The Russian Ministry of Industry and Trade announced in early June that it would be limiting neon gas exports as part of its sanctions against countries it views as unfriendly. This move will add to lead times and prices for neon.
  • Downstream semiconductor manufacturers keep stockpiles of neon gas that have allowed them to continue manufacturing chips, though it is unknown how long these stockpiles will last. Semiconductor manufacturers will likely pay higher prices for neon gas outside Ukraine as global supplies dwindle.

Neutral


GSA memo asks agencies to review consulting contracts

  • The General Services Administration (GSA) recently issued a memorandum asking government agencies to review their consulting contracts with the ten highest-paid firms. The ten firms are Accenture PLC (Accenture Federal Services), Booz Allen Hamilton Inc., CGI Group Inc. (CGI Federal), Deloitte Touche Tohmatsu (Deloitte Consulting), General Dynamics Corporation (General Dynamics IT), Guidehouse Inc., Huntington Ingalls Industries Inc. (HII Mission Technologies), International Business Machines Corporation (IBM), Leidos Holdings, Inc., and Science Applications International Corporation, Inc. (SAIC).
  • The memo states that agencies are strongly encouraged to cut non-essential consulting contracts, providing a list of those intended to be terminated by March 7, 2025. By April 19, 2025, agencies must submit their reviews of non-GSA consulting service contracts.
  • According to the GSA, the ten consulting firms identified are set to receive $65.0 billion in fees in 2025. The Department of Defense (DoD) has stated its intention to terminate or descope contracts non-essential to the DoD’s purposes; some of the largest market players with high-value DoD contracts include Booz Allen Hamilton, Deloitte, and Accenture.
  • According to the Government Accountability Office, in the fiscal year 2023, government agencies spent $478.0 billion on services, with the DoD accounting for $230.0 billion and non-defense agencies accounting for the rest. The DoD spent $21.3 billion on support, professional, and engineering and technical services, while non-defense agencies spent $21.4 billion on professional services, which includes consulting, training, and support services.
  • The Department of Veterans Affairs (VA) initially cancelled 875 contracts (amounting to around $2.0 billion) but has currently paused efforts. However, contract terminations across most agencies are expected to continue.

Global IT Support Services Market - Suppliers by Region

Country/Region Number of Suppliers
#1 Oceania & Southeast Asia 115,485
#2 India 40,060
#3 Europe 35,880

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  • Canada
  • United States
  • Mexico
  • Latin America
  • South America
  • India
  • China
  • Europe
  • Africa & Middle East
  • Australi & New Zealand
  • Oceania & Southeast Asia

2

Geography Drilldown - US, Canada & Europe

Average Cost of IT Support Services

United States

2026 Market Pricing
$10.00 to $XXX.XX
per device per month

Canada

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Europe

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Average Price

Prices in the IT Support Services market range from $10.00 to $XXX.XX, depending on Level of Vendor Expertise, Brand Name, Complexity of Buyer's Network, Availability of Staff and Location. For example, lower prices are associated with Less experienced staff ($12.00 to $400 per device per month), whereas higher prices are associated with Highly experienced staff ($20.00 to $500 per device per month).

Need the scoop on international price trends?

Between our Europe and Canada collections, we provide price data for 350 markets so you can instantly compare prices across borders. Or, use our custom research services for intel on prices in any region across the globe.

IT Support Services Category Price Trends

Pricing trends are indicated by the compound annual growth rate (CAGR) during a set period of time. For the IT Support Services market, prices in the US have grown 1.3% from 2022 to 2025. and +2.2% in Europe.

United States (2022-2025)

1.3%
Compound Annual Growth Rate

Canada (2016-2019)

1.9%

Compound Annual Growth Rate

Subscribers can access updated Canadian data upon request.

Europe (2022-2025)

2.2%

Compound Annual Growth Rate

Wondering where prices are heading?

Price trend forecasts are available to subscribers, along with price driver projections and forward-looking cost structure data.

Cost Analysis - Total Cost of Ownership for IT Support Services

Total cost of ownership is Low in the IT Support Services market. The average cost of ownership differs depending on the contract but generally includes costs negotiated before the contract begins, costs billed during the contract period and unforeseen costs. For example, unforeseen costs in the form of Downtime may raise the total cost of ownership unexpectedly.

Negotiated Before

Implementation

Buyers might need to procure additional hardware or software to implement their support solutions, which can add substantially to their total costs. However, skilled vendors can often customize solutions that work within the confines of each buyer’s existing IT infrastructure.

Billed During

Travel

Some network problems cannot be corrected remotely. In these instances, the supplier must send a technician to the buyer’s site.

Unforeseen

Downtime

To assess network problems and security breaches, suppliers may need to take control of the buyer’s network and run diagnostic testing that interferes with network performance.

Obsolescence

Buyers can face various costs associated with end-of-life IT, including data migration as well as decommissioning and disposal of obsolete hardware.

Buyer Power in Procurement Negotiations

In 2026, buyer power amounts to -0.4 in the United States. Buyer power is most positively impacted by Recent Developments. It is most negatively impacted by Market Share Concentration. Subscribers can access details on eight other factors that impact buyer power. Learn more

United States

-0.4

Canada

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Europe

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Buyer power forecasts: your glimpse into the future

Develop strategies for the upcoming year and identify unforeseen opportunities for buying now

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  • Near-real-time updates to current and forecast Buyer Power Scores
  • Methodology and weightings for Buyer Power Score Components

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Supply Chain Risk

The average level of supply chain risk is assessed as Medium, which has a negative impact on buyer power. The level of supply chain risk is affected by industry volatility, barriers to entry, competition, import penetration, regulation and industry financial risk. Buyers in this market can mitigate procurement and supply chain management risks by monitoring risk levels for individual first and second tier suppliers:

1st

Tier Suppliers

  • Internet Service Providers
  • Computer Manufacturers
  • Wired Telecom Carriers

2nd

Tier Suppliers

  • Telecom Networking Equipment Manufacturers
  • Semiconductor & Electronic Component Manufacturers
  • Transmission Line Construction Companies

Biggest IT Support Services Suppliers in the US by Revenue

The largest IT Support Services vendors by revenue in the US are HCL Technologies Limited, Dxc Technology Co and ConnectWise LLC. Subscribers can sort and filter by market share concentration, profit level and other factors. Learn more

Supplier Operational Size Headquarters Number of Employees Market Share (%) Market Share Performance (3yr trend) Total Revenue ($ million) Profit Level (%) Risk Level
HCL Technologies Limited Global Noida, IN >10,001 < 5
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Accenture Plc International DUBLIN >10,000 < 5
International Business Machines Corporation Global ARMONK >10,000 < 5
General Dynamics Corporation International RESTON >10,000 < 5
Dxc Technology Co Global ASHBURN, VA >10,000 < 5
Epam Systems, Inc. Global NEWTOWN, PA >10,000 < 5
Genpact Ltd. International HAMILTON >10,000 < 5
ConnectWise LLC International Tampa, FL 1,001-10,000 < 5
Dataprise Inc. National Rockville, MD 251-500 < 5

Looking for a list of suppliers by country?

Subscribers can access vendor information on Canadian and European suppliers, too. We also offer custom research services to help with vendor sourcing anywhere in the world.

Profit Analysis

The average profit margin across vendors in the IT Support Services market is 7.7% and steady. Profit levels shift depending on suppliers' spend on wages, purchases and overhead. The highest cost component for vendors is Overhead. The cost trend for this component is rising, when considering movement between 2025 and 2026. To understand cost forecasts for 2027 and uncover the implications on profit, start your subscription. Learn more

Vendor & Supply Chain Analysis

IT support service providers cater to a wide variety of buyers, which helps to maintain steady streams of demand. In addition, IT support suppliers face relatively minimal capital investment requirements and, therefore, take on few startup costs and liabilities, leading to a low degree of vendor financial risk on average.

There is a very low degree of market share concentration among the estimated 8,000 providers of IT support services due to the low barriers to entry and increasing demand for market services.

The supply chain for IT support services poses moderate risk that primarily stems from the risk associated with wired telecommunications.

The United States is a net importer of computers, meaning it imports more computers than it exports. While lower manufacturing costs abroad drive down prices for imported computers, relying on imports can lead to potential shortages or price increases if there are supply chain disruptions due to geopolitical tensions, trade disputes, or global crises

Supplier Information

Accenture Plc

Accenture Plc is a public company operating internationally in the mining, information, professional, scientific and technical services and administration, business support and waste management services sectors. The company's offerings include mobile enterprise application platforms, claims management software,... Subscribe to learn more

Allegis Group, Inc.

Allegis Group, Inc. is a private company operating globally in the professional, scientific & technical services and administration, business support and waste management services sectors. The company's offerings include temporary clerical & administrative staffing, temporary it staffing, temporary warehouse... Subscribe to learn more

ConnectWise LLC

ConnectWise LLC is a private company operating internationally in the information and professional, scientific & technical services sectors. The company's offerings include cpq software and it support services. Founded in 1982, the company is currently headquartered in Tampa, Florida, United States of America... Subscribe to learn more

Dataprise Inc.

Dataprise Inc. is a private company operating nationally in the professional, scientific & technical services sector. The company's offerings include it support services. Founded in 1995, the company is currently headquartered in Rockville, Maryland, United States of America with an estimated 375 employees.... Subscribe to learn more

Dxc Technology Co

Dxc Technology Co is a public company operating globally in the information and professional, scientific and technical services sectors. The company's offerings include it consulting services, it systems integration services, it support services, software testing services, it hosting services. Founded in Subscribe to learn more

Epam Systems, Inc.

Epam Systems, Inc. is a public company operating globally in the professional, scientific and technical services sector. The company's offerings include it support services and network operations center management services. Founded in 1993, the company is currently headquartered in NEWTOWN, Pennsylvania, Subscribe to learn more

General Dynamics Corporation

General Dynamics Corporation is a global aerospace and defense company that designs, engineers, and manufactures solutions for the aviation and defense markets. It organizes its business into four segments: the Aerospace segment, which provides aircraft, aircraft repair, and support and completion services... Subscribe to learn more

Genpact Ltd.

Genpact Limited is a global professional IT services firm. It leverages digital technologies and specialized analytics, including its Digital Smart Enterprise ProcessesSM (Digital SEPs), a patented and highly granular approach that tests the effectiveness of client processes, and the Genpact Cora, an AI-based... Subscribe to learn more

HCL Technologies Limited

HCL Technologies Limited is a public company operating globally in the professional, scientific & technical services and administration, business support and waste management services sectors. The company's offerings include business process outsourcing services, it systems integration services, technical... Subscribe to learn more

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Procurement Management KPIs for the IT Support Services Market

Managing vendor performance throughout the contract period is easier when tracking specific key performance indicators (KPIs). For example, buyers should monitor Average Resolution Time and Average Response Time. Buyers may experience better performance throughout their contracts if they establish service level agreements (SLAs) based on Compliance and other factors.

KPI Level of Importance (1-5) Measurements Key Considerations
Average Resolution Time

Total resolution time

Number of resolved tickets

The average resolution time represents the average amount of time it takes to resolve a support ticket.

The average resolution time can be used to determine a company’s support responsiveness.

This KPI can provide insight into how prompt and efficient the supplier and can help maximize overall productivity in the buyer's IT operations.

Average Response Time

Average response time

Percentage of requests responded to in 24 hours

The average response time measures how quickly the vendor responds to support requests.

A low average response time indicates that the vendor is acknowledging support requests in a timely manner.

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Questions to Ask During Procurement Negotiations

How can I gain leverage during negotiations?

Experience and Expertise

What is your previous experience working within this business sector?

How comparable is my company's IT infrastructure to those with which you most commonly work?

Value-Added Services

What additional services do you offer to assist with IT infrastructure and databases?

What are the benefits of acquiring these services from you?

Accessibility

What are your hours of operation?

Do you offer an emergency line to call in case of network problems that occur outside your normal hours of operation? If so, do you charge an additional fee for such emergency services?

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IT Support Services RFP Guidelines

What should my RFP include?

Organizational Overview

Buyers should provide any relevant background information about their business, including size and location(s).

Buyers should list the existing IT systems that are currently in place, including hardware, operating systems and other software and what functions they currently outsource, if any.

Statement Of Need

Buyers should state the number of servers, workstations or users they need to have covered.

Buyers should state the length of the contract they desire, including any renewal options.

Project Budget

Buyers should state what pricing model they prefer suppliers provide their quotes in and what the stated price includes.

Buyers should include their preferred payment schedule.

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  • Supply chain and vendors
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