The global crises and the economic slowdown are causing little concern for IT service providers in Germany so far. The companies still expect average revenue growth of more than ten percent for 2019 and 2020, according to an analysis by management consultants Lünendonk. As a result, growth only flattened slightly compared to 2018, when analyzed IT service providers grew by 11.9 percent.
Reason for the boom: Many companies continue to invest in digitization, for example the modernization of IT systems, which form the basis for digital processes and new business models. Due to a lack of specialists and lack of know-how, a “high demand for external services” is still to be expected, said Lünendonk partner Mario Zillmann on Wednesday in Munich.
The management consultancy regularly misses the market for IT consulting and system integration. The Lünendonk list leads as in previous years Accenture With an increase in turnover from two to 2.25 billion euros in Germany last year, the company further expanded its leadership ahead of T-Systems (1.5 billion euros). Ranked third IBM in front Capgemini and NTT Data,
The consultancy analyzed 73 IT service providers, which represent almost two-thirds of the German market with sales of 25 billion euros. With a plus of 13.8 percent, the medium-sized IT consultations performed particularly successfully last year – including MHP with 431 million euros and GFT with 413 million euros in sales. Also adesso, Materna and ESG are on the list.
A traditionally important customer of IT service providers is the automotive industry. Its significance increased further in 2018: the industry's share of total sales grew from 14.6 to 16.4 percent. The development of electromobility is forcing investments, which offsets savings in IT elsewhere, said Rüdiger Azone, CEO of Pentasys.
“Even in the car, IT is now part of the core product,” added Dieter Löwe, Managing Director at NTT Data. It is becoming increasingly important to develop joint projects with the manufacturers. Volkswagen is a good example: In recent months, the company announced that it will be networking its factories with Amazon Web Services (AWS) and connecting its vehicles with Microsoft.
Even in the financial sector, the IT service providers continue to expect high investments despite the crisis – after all, many banks have to change their business models, which is not possible with systems that are decades old. Under the leadership of the new Chief Technology Officer Bernd Leukert alone, Deutsche Bank plans to invest around 13 billion euros in technology by 2022.
The growth hopes of the large IT service providers despite the adverse environment is also due to the fact that customers often reduce the number of their IT suppliers. “Customers are consolidating the vendor landscape,” said NTT Data CEO Leo. So the big ones get bigger while smaller vendors get harder. “When you focus on the right things, you also grow,” says the manager.
Last but not least SAP the IT houses work. The software group has announced the end of standard maintenance for older ERP systems in 2025, with which companies control their business processes – customers should introduce the new version S / 4 Hana. As there is not much time left for the system conversion, demand for skilled personnel is increasing, observes Lünendonk.
More: More and more industrial companies are adding new features to their systems with small updates. VDMA expert Peter Frühauf explains why the need for such retrofits will grow rapidly.
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