Telecom IT Services Market Report 2025

The telecom IT services market size has grown rapidly in recent years. It will grow from $1.22 trillion in 2024 to $1.39 trillion in 2025 at a compound annual growth rate (CAGR) of 14.4%. The growth in the historic period can be attributed to telecom network expansion, increasing data traffic, network security concerns, customer experience enhancement, globalization and market competition.

The telecom IT services market size is expected to see rapid growth in the next few years. It will grow to $2.57 trillion in 2029 at a compound annual growth rate (CAGR) of 16.5%. The growth in the forecast period can be attributed to 5g network rollout, edge computing adoption, iot and smart devices integration, cloud-based solutions, cybersecurity measures. Major trends in the forecast period include 5g network integration, iot and m2m connectivity, customer experience enhancement, automation and ai-driven operations, cloud integration and migration.

The growing adoption of smartphone devices is anticipated to drive the expansion of the telecom IT services market in the future. Smartphones are portable electronic devices that allow users to browse the internet and send and receive text messages. Mobile technology provides users with access to information, enhancing the flexibility of services. Telecom IT service providers are focusing on delivering backend support and developing data-driven offerings; consequently, the rising usage of smartphones is expected to boost market growth. For example, a report from Demandsage, a U.S.-based automated reporting platform that utilizes data science for insightful analysis, indicated that as of 2022, there were around 6.6 billion smartphone users globally, marking a 4.2% increase from the previous year. Therefore, the growing prevalence of smartphone devices is propelling the telecom IT services market forward.

The increasing adoption of cloud-based solutions is expected to drive the growth of the telecom IT services market in the future. A cloud-based solution encompasses programs, storage options, on-demand services, computer networks, and other offerings accessible through a shared cloud computing framework provided by another entity via an internet connection. In the telecom sector, cloud-based solutions utilize IT services to provide scalable infrastructure, improved data storage, and efficient service delivery, facilitating cost-effective network management and innovative service offerings. For example, a report from the European Commission, a Belgian governmental organization, indicated that in 2023, 77.6% of large enterprises reported utilizing cloud computing services, which represents a 6 percentage point increase from 2021. Additionally, the adoption of cloud services among medium-sized enterprises rose to 59% in 2023, up from 53% in 2021. Thus, the growth of cloud-based solutions is driving the expansion of the telecom IT services market.

Technological advancements stand out as prominent trends gaining traction in the telecom IT services market. Key companies in this sector are embracing new technologies as a strategic move to maintain their market positions. For example, in February 2023, HCL Technologies Limited, an India-based information technology services and consulting company, introduced two innovative technology suites CloudSMART Modernization Experience and Site Reliability Engineering (SRE). These offerings aim to accelerate the modernization of telecom networks through the utilization of Cloud Native platforms. HCLTech's CloudSMART Modernization Experience leverages open-source and off-the-shelf IT vendor solutions, enabling telecom service providers to create customized solutions by integrating the best platforms from various network solution vendors. Additionally, HCLTech's SRE enablement for Cloud Native telecom encompasses a comprehensive set of practices necessary for successful large-scale telecom operations on current Cloud Native platforms. This integration empowers telecom service providers to enhance and maintain industry-leading reliability levels by incorporating modern SRE practices into their operations, resulting in increased efficiencies and reduced reliance on traditional telecom network providers.

Prominent players in the telecom IT services market are directing their focus towards technological advancements, particularly in cloud platforms, to address the increasing demand for scalable and agile network infrastructure solutions. A case in point is Airtel CCaaS (Contact Center as a Service), a cloud-based platform by Bharti Airtel, an India-based telecom company. Launched in October 2023, Airtel CCaaS provides businesses with comprehensive tools for efficient multi-channel customer interactions and support. This innovative integrated cloud platform streamlines contact center operations by merging voice, cloud, and software functionalities into a unified solution. This not only enhances customer interaction but also reduces investment costs associated with disparate vendor contracts historically used in contact center management.

In February 2023, Waterfield Technologies Inc., a US-based customer engagement solutions provider, acquired Dice Communications for an undisclosed amount. This acquisition is poised to expand Waterfield Tech's solution portfolio with complementary services, adding new, value-added services for existing customers. The overall impact is expected to enhance contact center efficiencies and bring about favorable financial outcomes. Dice Communications, a US-based IT and telecom solution company, specializes in providing networking, security infrastructure, wireless LAN infrastructure, Disaster Recovery as a Service, and IT-managed services.

Major companies operating in the telecom IT services market include Accenture plc, Amdocs, ALE International SAS, Capgemini SE, Cognizant, Telefonaktiebolaget LM Ericsson, Huawei Technologies Co, The International Business Machines Corporation, Oracle Corporation, WTG Technologies Limited, X4 Solutions, Telarus Inc., Intellisys Communication Inc, Telecom Brokerage Inc, Reliance Industries Ltd, China Mobile Ltd, T-Mobile US Inc, Verizon Communications Inc, Comcast Corp, Deutsche Telekom AG, Nippon Telegraph and Telephone Corp, AT&T Inc, SoftBank Group Corp, Telefonica SA, Vodafone Group Plc, Orange SA, BT Group Plc, Telstra Corp Ltd, China Telecom Corp Ltd.

Asia-Pacific was the largest region in the telecom IT services market in 2024 and is expected to be the fastest-growing region in the global telecom IT services market report forecast period. The regions covered in the telecom it services market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the telecom it services market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

Telecom IT services encompass offerings that assist telecom companies in establishing a robust and high-performance communication network while implementing new business models. These services play a crucial role in enhancing productivity in core corporate connectivity workloads and ensuring effective customer service.

The key solutions provided by telecom IT services include CRM, mobile commerce, enterprise mobility, network management, supply chain management, OSS BSS, and other related services. CRM, or customer relationship management, is a user-friendly tool empowering customer service agents to forge distinctive and personalized customer relationships. These services are deployed through various methods, including cloud-based, on-premise, and hybrid, catering to both small and medium-sized businesses (SMBs) and large enterprises. The applications span commercial and residential domains.

The telecom IT services market research report is one of a series of new reports that provides telecom IT services market statistics, including telecom IT services industry global market size, regional shares, competitors with telecom IT services market share, detailed telecom IT services market segments, market trends, and opportunities, and any further data you may need to thrive in the telecom IT services industry. This telecom IT services market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenarios of the industry.

The telecom IT services market includes revenue earned by entities by providing infrastructure management solutions, big data analytics, customer experience management, and transfer management. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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