By: ProcurementIQ Analyst, Michelle Hovanetz
Strategic Questions for Choosing the Right Supplier
The IT consulting market has expanded in recent years, alongside explosive growth in the tech sector and the ever-looming threat of cyber attacks. These trends are expected to help generate $424.3 billion in market revenue in 2018, according to ProcurementIQ estimates.
As technology continues to proliferate and the number of organizations across all industries that need aid in planning, developing and troubleshooting IT systems and processes increases, the number of IT consulting firms will keep rising. ProcurementIQ estimates that 478,000 suppliers currently provide IT consulting services in the United States, including vendors that work in both advisory and tactical roles on behalf of their clients. The large number of IT consulting vendors drives heavy fragmentation in the market, and IT consultants face few barriers to entry aside from the requisite technical knowledge. As a result, there are many small IT consulting firms and individual IT consultants. Still, there are also large diversified consultancies operating in the market that provide numerous types of consulting. In the past three years, these large consultancies have aggressively acquired smaller competitors to bolster their market share, though overall concentration in the market remains low. The many suppliers in the market makes it difficult for buyers to select the right vendor to suit their needs.
Below is a list of key questions that ProcurementIQ recommends buyers ask when choosing between IT consulting providers: