The technology consulting industry has gone through a significant number of changes over the past few years. During this time, a vast number of trends came and went. While many of these have left a lasting impression on the sector, some have gone unnoticed.
This also looks to be the case in 2023, as there seems to be a variety of technology consulting trends that will affect the industry. At the same time, some might not be as significant as many expect, and several looks at altering the sector.
Since preparation and knowledge are often vital, most firms may need to know these trends. 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 understand what may be 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. Over eight billion devices are 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 they want to focus on but rather what can be done with these things. This is especially true when considering the IoT’s information 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, using the Internet of Things 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 various industries, with technology consulting being a dramatically affected area. While the Internet of Things has played a significant role, various other factors have affected this.
For example, advanced analytics software and Big Data have significantly impacted the industry. This shows no sign of slowing down anytime soon, as the analytics these can provide can translate into additional services and better optimization.
This optimization can be seen in various ways, focusing on how services can be streamlined and improved. Alongside this, firms can better understand what clients and potential customers want.
With how much of an impact the Internet of Things has on the technology consulting industry, various areas have begun adjusting. This has led to a few trends becoming increasingly prominent. One of the more notable 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 impractical over time. However, this could be because 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. Much of this is driven by the tech’s benefits, especially regarding the volume of information being sent and received almost constantly.
Because of the increasing hyper-connectivity worldwide, firms must capitalize on faster technologies and services. 5G may be one of the more unique technologies that firms can use, 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 many other industries. There have been various reasons for this, with security being one of the more notable. In addition, it could 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. However, it’s been a relative niche area for much of this, with few firms taking full advantage of it. Despite this, it’s starting to gain a significant amount of momentum, 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 it can transform and improve various operations.
The Fall Of Virtual Reality
Virtual Reality (VR) has been quite well-used by various firms over the past few years. This has made it one of the more significant industry trends 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 AR will replace VR much more in the coming years.
The Rise Of FAAS
Failure as a Service (FAAS) provides 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 technologies 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 critical 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. However, with the speed of growth and expansion over the past few years, this could become quite a significant problem.
As such, quite a large number of firms could find themselves needing to put a significant amount of time into overcoming this. Much of this will be focused on keeping a company flexible and adaptable as it grows, an area with which some firms may struggle.
Ongoing adaption and transformation are becoming increasingly vital for many firms in the digital consulting world. This may be because of the various technologies and other trends affecting the niche. As a result, firms must change and grow to meet these trends and technologies.
These will be seen in various ways and across an entire company. With how technology can be implemented in many areas, the ongoing transformation will be beneficial and mandatory for most industry firms.
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 evident, the amount that this has been seen could be surprising.
Coupled with this is that some statistics might not be as apparent as others, regardless of how experienced a person is. 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%.
- 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 by 30% between 2018 and 2019, affecting the IT consulting industry.
- 62% of business leaders in the technology consulting industry view culture as a hurdle they must overcome.
- CAGR is expected to grow by 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 are 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 its presence felt across 2023. As such, they’re areas that most professionals in the sector will need to pay significant attention to.
While these may present particular challenges, preparation can help overcome them. Knowing how they’re affecting the industry can be pretty helpful. Researching them and planning should allow you to avoid negative consequences while capitalizing on many other trends.