GenAI's Impact on IDC's Services Markets

Description

This IDC Market Perspective addresses the impacts of AI and GenAI on IDC's services markets, allowing service providers to understand the opportunities and challenges in delivering services in the current environment."AI and generative AI will have different impacts on individual services markets, both adding spending for some services and reducing spending for others," said Gard Little, research vice president, Global Services Markets and Trends at IDC. "But IDC believes overall services spending will increase, much as it did with the advent of cloud computing."

Product Code: US52587223

Executive Snapshot

New Market Developments and Dynamics

Applications
Application Development and Deployment
System Infrastructure Software and Nonsoftware-Related Markets
Impact of AI/GenAI on IDC's Foundation Markets
- Business Consulting
  - Medium Impact - More Advice Needed on GenAI-Enabled Business Models
- IT Consulting
  - Medium Impact - Faster IT Assessments and More Data Modernization Needs
- Systems Integration
  - High Impact - More Automated Integration and Increased Focus on Data Infrastructure Design
- Custom Application Development, Application Management, and Hosted Application Management
  - High Impact - More Code Automation and Increased Insights
- Network Consulting and Integration
  - High Impact - Increased Automation of Integration; Requirement for High-Speed Low-Latency Networks to Enable AI/GenAI Use Cases
- Business Process Outsourcing
  - Medium Impact - More Automation and AI-Based Process Improvements
- IT, Network, and Endpoint Outsourcing Services
  - High Impact - More Substitution from Cloud Service Providers
- Hosting Infrastructure Services
  - Medium Impact - More Task Automation and Compute Infrastructure
- Hardware Deploy and Support
  - High Impact - More Automation and Better Data-Based Diagnostics and Resolution
- Software Deploy and Support
  - Medium Impact - Improved Reactive Support, More Predictive/Preventive Capabilities, and Better Self-Service Support
- IT Education and Training
  - High Impact - GenAI to Enhance Training Development and Delivery
- Digital Engineering and Operational Technology Services
  - Medium Impact - More Automation and Faster Solution Development
- Security Services
  - Medium Impact - More Sophisticated Support for Securing GenAI and Adopting GenAI-Enabled Solutions