The technology consulting industry has gone through a significant number of changes over the past few years. During this time, it’s seen an extensive number of trends come and go. While many of these have left a lasting impression on the sector, some have gone by relatively unnoticed.
This looks to be the case in 2020 as well, as there seems to be a variety of technology consulting trends that will affect the industry. While some might not be as significant as many would expect, there are several of them that look to alter the sector.
Since preparation and knowledge can often be vital, the majority of firms may need to know what these trends are. Though they’ll have varying impacts on the industry, they should make their presence known. As such, it’s in every technology consulting company’s best interest to know what may be lying ahead for them.
The Biggest Trends In The Technology Consulting Industry
Internet Of Things (IoT)
The Internet of Things has affected quite a large number of industries in various ways. Technology consulting is no exception. There are over eight billion devices connected to the IoT in circulation, which has meant that firms may need to pay a significant amount of attention to it.
However, it may not be about the devices themselves that they would want to focus on, but rather what can be done with these things. This is especially true when considering the information that the IoT can supply and what this data can be used for.
Technology consulting firms can use this information to optimize campaigns, perform consultations, and much more. As such, the use of the Internet of Things in this way should become increasingly more prominent in the coming months and years.
Over the past few months, there has been an analytics revolution in a variety of industries, with technology consulting being an area that’s been dramatically affected. While the Internet of Things has played a large role in this, there has been a variety of other factors that have affected this.
For example, advanced analytics software and Big Data have both made a large impression on the industry. This shows no sign of slowing down anytime soon, as the analytics that these can provide can translate into additional services and better optimization.
This optimization can be seen in a variety of ways, with much of it being focused on how services can be streamlined and improved. Alongside this, it allows firms to better understand what clients and potential customers may be looking for.
With how much of an impact the Internet of Things is having on the technology consulting industry, there have been a variety of areas that have begun adjusting. This has led to a few trends becoming increasingly more prominent. One of the more notable of these is edge computing, which has quickly jumped to the forefront of the industry.
Much of this is driven by the fact that sending data to the cloud could become increasingly more impractical over time. This could be because of more AI-connected devices are being used, which has meant that edge computing has become a much more viable prospect.
5G Cell Processing
5G technology is still relatively new, although this has meant that it’s poised to make a significant impression over the coming months and years. A lot of this is driven by the benefits that the tech offers, especially when it comes to the volume of information that’s being sent and received on an almost constant basis.
Because of the increasing amount of hyper-connectivity across the world, firms will have to capitalize on faster technologies and services. 5G may be one of the more notable technologies that firms will be able to take advantage of, especially as the network continues to be rolled out.
The Rise Of Blockchain
Though Blockchain has traditionally been associated with cryptocurrency, the technology has been adopted by an increasing number of other industries. There have been a variety of reasons why this is the case, with security being one of the more notable. Alongside this, it could prove to be much faster than many other peer-to-peer asset transaction exchanges.
These should have benefits for a variety of firms. The technology has already been implemented in several ways, although it’s yet to be fully used by many firms. However, this looks to change as many technology consulting firms have seen how it could be used alongside other tech.
AI Goes Mainstream
Artificial Intelligence (AI) has been used in the technology consulting industry for quite some time. For much of this, however, it’s been a relatively niche area, with few firms taking full advantage of it. Despite this, it’s starting to gain a significant amount of momentum, with this being seen across a broad range of areas.
This could mean that AI will become a fundamental aspect of every technology-focused firm over the next few years. Much of this is driven by the variety of ways that it can be used to transform and improve a variety of operations.
The Fall Of Virtual Reality
Virtual Reality (VR) has been quite well-used by a variety of firms over the past few years. This has made it one of the larger trends affecting the industry in the past decade. However, it’s starting to fall by the wayside, as Augmented Reality (AR) has become increasingly popular.
There’s a wide range of reasons why this is the case, with some of the more notable being that it’s more efficient, cost-effective, and easier to use. This should mean that AR will begin to replace VR much more during the coming years.
The Rise Of FAAS
Failure as a Service (FAAS) is the process of providing rapid prototyping, visualization, and other fast fail methods to help firms plan accordingly. While this has been a minor part of the industry for quite some time, it’s becoming an increasingly popular service for many technology consulting firms to offer clients.
Being able to identify when something isn’t working, as well as how to fix and improve it, has been a concept in the business world for quite some time. With new technologies, this has become increasingly prominent in the IT consulting world. As such, it could be a key differentiator between winners and losers in the industry.
Culture As A Hurdle
Organizational culture has long been one of the biggest challenges to many firms. However, this was typically easy to address for many companies, as growth was relatively slow and steady. With the speed of growth and expansion over the past few years, however, this could become quite a prominent problem.
As such, quite a large number of firms could find themselves needing to put a significant amount of time into overcome this. A lot of this will be focused on keeping a company flexible and adaptable as it grows, which is an area that some firms may struggle with.
Ongoing adaption and transformation is becoming increasingly vital for many firms in the digital consulting world. This may be because of the various technologies and other trends that continue to affect the niche. As a result, firms will need to change and grow to meet these trends and technologies.
These will be seen in a variety of ways and across an entire company. With how technology can be implemented in many areas, ongoing transformation will not only prove to be beneficial, but mandatory for most firms in the industry.
Statistics In The Technology Consulting Industry Everybody Should Know
Alongside each of the trends affecting the technology consulting industry, there are a variety of statistics that every professional in the sector should know. While the growth and decline of some areas may be obvious, the amount that this has been seen could be surprising.
Coupled with this is the fact that some statistics might not be as obvious as others, regardless of how experienced a person is in it. Some of the more notable statistics are:
- The technology consulting industry has grown to employ 2,385,571 people in the United States alone.
- Between 2014 and 2019, the industry grew at an average annual rate of 4.2%.
- The market for IT and technology consulting is approximately 20% of the overall consulting market.
- The Compounded Annual Growth Rate (CARG) has been around 5% annually since 2011.
- Integration services, app design, and development account for approximately 25% of the industry.
- Internet of Things (IoT) devices have increased 30% between 2018 and 2019, with much of this affecting the IT consulting industry.
- 62% of business leaders in the technology consulting industry view culture as a hurdle they need to overcome.
- CAGR is expected to grow 11.8% between 2018 and 2025.
- North America is expected to lead revenue and growth in the technology and software consulting industries.
- The rise of smartphones has meant that they’ve become an increasing focus for many firms in the niche and is expected to drive revenues in the coming years.
Knowledge is vital for the majority of industries, with this being especially true for the technology consulting industry. Each of the above trends will continue making their presence felt across 2020. As such, they’re areas that the majority of professionals in the sector will need to pay a significant amount of attention to.
While these may present certain challenges, preparation can help overcome them. As such, knowing how they’re affecting the industry can be quite helpful. Alongside this, researching them and planning ahead should allow you to avoid any negative consequences while capitalizing on many other trends.
Thanks for reading "Trends That Will Transform The Technology Consulting Industry Outlook in 2020", by the Linchpin Team in Chicago, Raleigh, and Wake Forest.