Procurement Market Intelligence Report
IT Consulting Services
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IT Consulting Services Global Overview
Definition
Summary
IT consulting firms focus on providing the following services: writing, testing, and supporting custom software; planning and designing integrated hardware, software, and communication infrastructure; and management of computer systems and data processing facilities. IT consulting firms also offer advisory in the aforementioned subject areas. Typical buyers of IT consulting firms are all types of businesses that integrate technology into their daily operations.
This Report Includes:
- Writing, Testing & Supporting Custom Software
- Planning & Designing Integrated Hardware
- Software & Communication Infrastructure
- Management of Computer Systems & Data Processing Facilities
Not in this Report:
- IT Staffing & Recruitment
- Other Consulting Services
Global IT Consulting Services Procurement Trends
Discover the top international trends affecting procurement in the global IT Consulting Services market.
Warning Trends
United States announces additional tariffs on China
- In February 2025, the United States announced 10.0% tariffs on imports from China. The tariffs took effect on February 4, 2025.
- The tariff plan applies to all merchandise imported for consumption and applies in addition to other duties and fees that are in place, with limited exceptions.
- In response, China announced a 15.0% tariff on products such as coal and natural gas, as well as a 10.0% tariff on crude oil, agricultural machinery, pickup trucks, and large cars. The tariff executive orders indicate retaliatory tariffs could lead to further escalation in rates.
- Providers in this market rely on inputs often sourced from China. As such, ProcurementIQ will continue to monitor developments in this space and update analysis accordingly.
United States postpones plans for sweeping tariffs on Canada and Mexico
- In February 2025, the United States announced 25.0% tariffs on imports from Canada and Mexico.
- Though initially set to take effect on February 4, 2025, the implementation of tariffs on Canada and Mexico has been postponed 30 days to allow for further negotiation.
- The tariff plan initially proposed by the US applies to all merchandise imported for consumption and applies in addition to other duties or fees that are in place, with limited exceptions.
- Providers in this market rely on input costs often sourced from an affected country. As such, ProcurementIQ will continue to monitor developments in this space and update analysis accordingly.
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 Consulting Services Market - Suppliers by Region
| Country/Region | Number of Suppliers |
|---|---|
| #1China | 641,290 |
| #2Europe | 593,560 |
| #3United States | 458,000 |
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Geography Drilldown - US, Canada & Europe
Average Cost of IT Consulting Services
United States
2025 Market Pricing$50.00 to $XXX.XX
per hourCanada
Europe
Average Price
Prices in the IT Consulting Services market range from $50.00 to $XXX.XX, depending on Experience, Technology and Project Complexity. For example, lower prices are associated with Junior IT consultants with less than 5 years of experience ($50 to $100 per hour), Consultants without specialty certifications ($50 to $150 per hour) and Consultants with limited project management experience ($50 to $100 per hour), whereas higher prices are associated with Specialized IT consultants with 10+ years of experience ($200 to $400 per hour), Certifications in rare or specialized technologies ($200 to $400 per hour) and Proven track record in managing large scale IT transformations ($200 to $400 per hour).
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 Consulting Services Category Price Trends
Pricing trends are indicated by the compound annual growth rate (CAGR) during a set period of time. For the IT Consulting Services market, prices in the US have grown 3.4% from 2022 to 2025. and +1.0% in Europe.
United States (2022-2025)
3.4%
Compound Annual Growth RateCanada (2016-2019)
2.0%
Compound Annual Growth RateEurope (2022-2025)
1.0%
Compound Annual Growth RateWondering 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 Consulting Services
Total cost of ownership is Medium in the IT Consulting 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 Cancellations may raise the total cost of ownership unexpectedly.
Negotiated Before
Customization
Pre-evaluation
Billed During
Upgrades
Hardware
Unforeseen
Cancellations
Buyer Power in Procurement Negotiations
In 2025, buyer power amounts to -2.4 in the United States. Buyer power is most positively impacted by Recent Price Trend. 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
Canada
Europe
Buyer power forecasts: your glimpse into the future
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- Actionable "Buy Now" and "Buy Later" insights
- Near-real-time updates to current and forecast Buyer Power Scores
- Methodology and weightings for Buyer Power Score Components
Supply Chain Risk
The average level of supply chain risk is assessed as Low, which has a positive 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
- Computer & Software Wholesalers
- Commercial Real Estate Leasing Firms
- Office Stationary Manufacturers
2nd
Tier Suppliers
- Computer Manufacturers
- Software Publishers
- Real Estate Sales & Brokerage Firms
- Law Firms
Biggest IT Consulting Services Suppliers in the US by Revenue
The largest IT Consulting Services vendors by revenue in the US are Booz Allen Hamilton Inc., Infosys Limited and Dxc Technology Co. 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 |
|---|---|---|---|---|---|---|---|---|
| International Business Machines Corporation | Global | ARMONK | >10,000 | 5-10 | ||||
| Tata Consultancy Services Ltd | Global | Mumbai, IN | >10,001 | < 5 | ||||
| Dell Technologies Inc. | Global | ROUND ROCK | >10,000 | < 5 | ||||
| Accenture Plc | International | DUBLIN | >10,000 | < 5 | ||||
| Capgemini Se | Global | Paris, FR | >10,001 | < 5 | ||||
| Dxc Technology Co | Global | ASHBURN, VA | >10,000 | < 5 | ||||
| Infosys Limited | Global | Bengaluru, IN | >10,001 | < 5 | ||||
| Booz Allen Hamilton Inc. | Global | MCLEAN, VA | >10,000 | < 5 | ||||
| McKinsey & Company | Global | New York, NY | >10,000 | < 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 Consulting Services market is 7.7% and rising. Profit levels shift depending on suppliers' spend on wages, purchases and overhead. The highest cost component for vendors is Purchases. The cost trend for this component is falling, when considering movement between 2024 and 2025. To understand cost forecasts for 2026 and uncover the implications on profit, start your subscription. Learn more
Vendor & Supply Chain Analysis
IT consulting service providers face a low risk of input price shocks or discontinuity of services resulting from supply chain risk problems. Suppliers’ primary input is labor, which reduces risk.
Market share concentration is relatively low, as the top vendors account for roughly 20.0% of the market share. Because market share concentration is projected to remain low overall, and the number of suppliers is rising, buyers will retain leverage during negotiations.
All types of buyers, including government agencies improving information security and healthcare providers enhancing privacy features and integration across facilities, use IT consulting. As a result, vendors in this market have low financial risk because the loss of demand from one key buyer is likely to be offset by rising demand from one of their many other buyers.
The United States is a net importer of computers and computer systems. This provides some volatility for suppliers' input costs, as prices may fluctuate based on trade policy and tariffs.
Supplier Information
International Business Machines Corporation
International Business Machines Corporation (IBM) is a global integrated computer technology, hardware, software, and services provider. It organizes its business into four segments: Software segment, which provides software solutions for a hybrid cloud platform, data and artificial intelligence, automation,... Subscribe to learn more
EY
EY is a private company operating globally in the mining, finance and insurance, professional, scientific and technical services and administration, business support and waste management services sectors. The company's offerings include oil & gas field consulting services, management consulting services, Subscribe to learn more
KPMG International Limited
KPMG International Limited is a private company operating globally in the mining, finance and insurance, professional, scientific and technical services and administration, business support and waste management services sectors. The company's offerings include oil & gas field consulting services, management... Subscribe to learn more
McKinsey & Company
McKinsey & Company is a private company operating globally in the mining and professional, scientific and technical services sectors. The company's offerings include oil & gas field consulting services, carbon management services, management consulting services, environmental, social & governance (esg) consulting... Subscribe to learn more
Booz Allen Hamilton Inc.
Booz Allen Hamilton Inc. is a public company operating globally in the professional, scientific and technical services sector. The company's offerings include management consulting services, it consulting services, healthcare consulting services, data privacy consulting services, it systems integration services.... Subscribe to learn more
Infosys Limited
Infosys Limited is a public company operating globally in the information, finance and insurance, professional, scientific and technical services, administration, business support and waste management services and educational services sectors. The company's offerings include ai development services, robotic... 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
Capgemini Se
Capgemini Se is a public company operating globally in the professional, scientific and technical services and administration, business support and waste management services sectors. The company's offerings include ai development services, industrial design services, business process outsourcing services,... Subscribe to learn more
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
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Procurement Management KPIs for the IT Consulting 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 Critical Bugs. Buyers may experience better performance throughout their contracts if they establish service level agreements (SLAs) based on Response Time and other factors.
| KPI | Level of Importance (1-5) | Measurements | Key Considerations |
|---|---|---|---|
| Average Resolution Time | Length of time from query to solution Number of times that resolutions are not met | Vendors should be measured on their ability to quickly resolve issues. The resolution time will drastically affect a buyer's relationship with their customers. | |
| Critical Bugs | Number of flagged system bugs Severity of system bugs | If there are critical bugs, this can result in inefficient work or downtime. Bugs in the system will jeopardize a buyer's reputation. | |
Questions to Ask During Procurement Negotiations
How can I gain leverage during negotiations?
Experience and Expertise
What is your previous experience working in my industry?
How comparable is my company's IT infrastructure to those you most commonly work with?
Workforce
What are the various stages of your hiring process? What specialized skills do you require your employees to possess to design, implement, or modify IT systems?
Are there records available that show prior training and certifications for all members of the company?
Timeliness
What is your client renewal or repeat business rate? Why do companies renew their contracts with your business?
How do you evaluate customer satisfaction, and how frequently do you do so? Is this made available to clients?
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IT Consulting Services RFP Guidelines
What should my RFP include?
Organizational Overview
Buyers should describe their organization, including their line of work, number of employees, locations, and organizational structure.
Buyers should provide a brief summary of their current IT infrastructure.
Statement Of Need
Buyers should provide a description of their network, including the number of users, the primary uses, and a list of the hardware and software components incorporated into it.
Buyers should outline the critical issues they currently face.
Project Budget
Buyers should specify their budget for IT consulting services.
Buyers should detail their preferences as to how to proceed if the budget is exhausted before services are completed.
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We display average pricing information, trends and market data.
Our Reports include:
- Opportunity assessment
- Market dynamics
- Recent developments
- Positive and warning trends
- Buyer power levers
- Price environment and market pricing
- Geographic wage rates
- Global market updates
- Total cost of ownership
- Cost structure benchmarks and analysis
- Supply chain and vendors
- Global supplier breakdown
- Market share concentration
- Regulation and business requirements
- Vendor management and KPIs
- Sourcing strategy guidance
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