Information Technology Consulting

The state of the economy affects spending by companies and other organizations on consulting services. During the economic recession in the late 2000s, many companies tightened their budgets and held off on information technology upgrades and replacements, thus scaling back on IT consulting services. By the late 2010s, the economy had improved and the need for information technology consultants increased. IBISWorld reported that the U.S. information technology consulting industry performed well during the second half of the 2010s. Annual growth was at 2.4 percent from 2019 to 2024. The industry’s steady growth has been fueled by a growing focus on data analytics, cybersecurity, cloud computing, and AI. Demand for information technology consultants will benefit from increasing mergers and acquisitions in other industries. As more companies consolidate, information technology consultants will be needed to help with the integration of accounting, information storage, and other technology systems.

The global IT consulting services market size was valued at $1.04 trillion in 2023, according to The Business Research Company, and it is expected to increase to more than $1.83 trillion by 2028. "The growth in the forecast can be attributed to increased focus on sustainability, remote work and collaboration, AI and automation integration, data governance and privacy, and agile and adaptive strategies," according to The Business Research Company. "Major trends in the forecast include rapid digitization, emerging technologies, digital transformation, technological advancements, and cybersecurity emphasis."

Software consulting remains a key component of the IT consulting industry. The global software consulting market size was valued at $273.13 billion in 2022, according to Grand View Research, and revenue was forecast to grow to $678.3 billion in 2030. The data analytics and advisory firm says that "technological developments in cloud computing and data analytics are increasing the demand for new services and encouraging enterprises to adopt novel and innovative solutions. In addition, the growing demand for software consulting services is expected to drive investments in advanced software technologies.

As of July 2024, the IT consulting industry in the U.S. was valued at $710.7 billion, according to IBISWorld, with 497,000 businesses and total employment of 3 million people. The data analytics firm reports that "IT consulting has experienced a shift in technological change towards cloud computing and data analytics. The constantly changing character of the industry has led larger players to acquire smaller companies and develop new products to remain competitive. Key drivers like strong corporate profit and rising investment in computers and software have driven its expansion as businesses have increased their IT-related budgets." A study by the Pew Research Center also points to opportunities in the information technology industry in post-pandemic times. The growth of remote work, education, medicine, social activities, and more is expected to continue through the next decade.

Employment for management consultants will increase much faster than average (11 percent) for all careers from 2023 through 2033, according to the DOL. The demand for management consultants will be especially strong in smaller consulting companies that focus on specific industries or business functions, such as information technology and human resources. Good job opportunities are also expected with federal and state government agencies; software publishers; and computing infrastructure providers, data processing, web hosting, and related services firms. Job opportunities for self-employed management consultants are expected to grow about as fast as the average through 2033. The competition for jobs will be keen because this is a lucrative field that attracts many jobseekers. Consultants who have an advanced degree and/or certification, specialized industry experience, and fluency in a foreign language will have the best prospects for securing work.

Job opportunities for computer systems analysts are also expected to increase 11 percent from 2023 through 2033. "As organizations across the economy continue to rely on and expand IT, computer systems analysts will be hired to design and install new computer systems," according to the DOL. "Small firms with minimal IT requirements may find it more cost effective to contract with outside firms for these services rather than to hire computer systems analysts directly." As more companies rely on information technology, computer systems analysts and consultants will be needed to design and install new computer systems. Smaller companies that have few IT needs will find it more cost-effective to outsource to cloud service providers and to organizations with IT service providers. This will offer more opportunities for computer systems design and related services. The health care industry will also need computer systems consultants for help with implementing electronic health records, e-prescribing, telehealth, and other health care information technology services.

Information technology consultants earned salaries that ranged from $55,000 to $138,000 in 2024, according to PayScale.com. The median salary was $86,518. This salary is much higher than the median annual wage ($48,060) for all occupations. Computer systems analysts earned a median salary of $103,800 in 2023, according to the DOL. Salaries ranged from $63,230 to $165,700.