IT service market in Germany is growing

The market for IT services in Germany has emerged growing from the Corona crisis: In the second Corona year 2021, the industry generated an average of 13.1 percent more sales than in the previous year.

Thanks to a strong demand for IT consulting, individual software development and system integration, the IT service companies active in Germany were able to look forward to a decent increase in sales in the second Corona year. The study “The market for IT services in Germany” by the market research company Lünendonk & Hossenfelder confirms the strong growth of the industry.

Highest growth since 2007

Growth in the field of IT consulting was to be expected in 2021 – it was still surprising that domestic sales increased by 13.1 percent in the second year of the Corona crisis. The industry last achieved a higher growth rate in 2007. In the first Corona year 2020, average growth was still 4.7 percent.

While in 2020 33 percent of IT service providers still had to struggle with shrinking revenues, in 2021 it was only 17 percent. Every second IT service provider was able to increase its income by at least 10 percent in 2021, and every fourth company achieved an increase in sales of at least 20 percent. For comparison: in 2020 it was still 25 percent and 6 percent respectively.

According to Lünendonk, the growth figures in the IT service market can be attributed to two central points:

“Companies from all industries are under enormous pressure to digitize and transform and need external expertise – often due to a lack of their own experience. Therefore, the need for digital and IT experts is as high as the catch-up effects that are now taking place in the digital transformation never before. In addition, we see a tension between high demand for external digital and IT experts and a very tight skilled labor market. This intensifies the competition for IT experts, which in turn leads to higher fees for some topics.” (Mario Zillmann, Partner at Lünendonk)

 

Full study to be published in July

The figures mentioned are the first results of the Lünendonk study 2022 “The market for IT services in Germany” by the market research company Lünendonk & Hossenfelder. The comprehensive market study with special chapters on medium-sized IT companies and the leading internal IT service providers is expected to be published in July 2022. In addition to around 90 IT service providers, around 140 IT managers from upper medium-sized companies as well as from large companies and corporations were surveyed for this purpose. IT service providers and their customers receive important key figures and comprehensive information for their further planning.

In general, the prospects for the coming years definitely seem positive:

“In this market segment, IT service providers are expecting an average increase in sales of 12.9 percent for 2022 and 12.6 percent for 2023.” (Tobias Ganowski, Junior Consultant at Lünendonk)

 

Source: Lünendonk & Hossenfelder GmbH