Total Retail Services Market

The IHL Insight MarketView series of research studies build upon all this knowledge and add analyst insight to graphically display vendor positioning, drive for innovation and projected growth. The Retail Technology Services Market is on pace to surpass $154b annually worldwide by 2025. This is an incredibly varied market that in 2021 just surpassed $135b for the first time. Key areas in this market include the following: Software Maintenance, Hardware Maintenance, Systems Integration (on-prem and SaaS), Strategic Consulting, BPO, IT Outsourcing, Application Development, Digital Transformation, Cloud Services, Security, Sustainability and Others.

In this research we look at 11 specific categories of IT Services:

• Software Maintenance: Activities related to bug fixes and ongoing updates of existing software systems.
• Hardware Maintenance: Traditional Break/Fix maintenance of hardware products throughout stores and retail enterprise but does not include the installation services.
• Systems Integration, On-Premise: These are services provided onsite to integrate different systems. This might include a combination of hardware and software. It is here where we include installation services.
• Systems Integration, SaaS: These are software integration and installation services provided in private or public cloud infrastructures primarily to integrate software systems that are exchanging data.
• Strategic Consulting: These are services generally provided at a higher corporate level that revolve around architecture and optimization of systems for speed, accuracy, redundancy and security. These are then implemented as consulting projects or other categories for specific projects.
• Business Process Outsourcing (BPO): These are the systems services and non-primary business IT activities that are contracted out to a 3rd party that allow for retailers to focus on their core competencies.
• IT Outsourcing: Unlike the BPO outsourcing that is designed more around non-primary business IT activities, here are we are talking about the core IT functions that are related to application and infrastructure solutions.
• Application Development: This refers to the activities related to custom software development and includes a wide range of functionalities including solutions from scratch or customizing software to run in the way the retailer wants to operate.
• Digital Transformation: These are services focused around the intentional acts and acceleration of transforming business activities, processes and competencies to leverage the changes and opportunities afforded by digital technologies.
• Cloud Services: Once again a very broad category but includes services provided to users on demand via the internet and include SaaS services as well as Infrastructure services.
• Other/IT: This is a catch-all category of all the other things that the IT department has to do that are not part of the definitions outlined. Some examples include Big Data, Risk, Fraud, Security, Commerce, Payment, Emerging Technologies, Eco-sustainability, Education, Training, Portals, Content Management, Quality Assurance, Application Load Management, etc..

Who are the real leaders?  What are the real Services rankings?  Who is leading in retail IT Outsourcing market? ?  It’s all here.

Companies are encouraged to use these charts in discussions with their vendor partners. It is our intent that they provide unique insights into vendor strategy and provide thought-provoking questions as we all move though and prosper in the Era of Intentional Innovation.

The goal of this report, as well as the entire IHL Retail Executive Advisory Program (REAP), is to provide the retail community with the most detailed and complete picture imaginable of the retail technology landscape. We do this to assist retailers in vendor selection and to help the industry understand the trends, drivers and barriers that are fundamentally transforming our industry.

NOTE: This study is available individually or at a discount as part of the IHL Retail Executive Advisory Program.

Readers of this research will get a forecast for 11 different categories of IT Services. Next we provide rankings for combined Total IT Services, Total Professional Services, Software Maintenance, Hardware Maintenance, Systems Integration, Business Process Outsourcing (BPO), IT Outsourcing, Cloud Infrastructure, Strategic Consulting, Application Development, and Digital Transformation Services.

Then we discuss market trends, drivers and market barriers.

Finally, we provide market profiles on the top 15 services providers by revenue. Each profile includes total revenues, revenues by hardware, software, SaaS, and services, revenues by region, and revenues by types of services offered. In addition, the profiles include merger and acquisition information as well as key clients.

What makes this research different and more rigorous is that it is based on a very sophisticated and highly objective research model. It allows vendors, retailers and analysts to see who are the real leaders in retail software, true software market rankings, who is leading in the fast growing services market, and which vendors are leading in sales, innovation, market reach and can implement a complete unified commerce approach to retail.

TABLE OF CONTENTS

Introduction

Market Definitions

Market Overview

Trends and Drivers

Barriers

Retail and Hospitality IT Services
Total Worldwide Services Spend Forecast Through 2026 by $
Total Worldwide Services Forecast Through 2026 by %
Vendor Rankings – Top 15 Vendors for Total Worldwide Services by $ and Market Share

Professional Services
Total Worldwide Professional Services Spend Forecast Through 2026
Vendor Rankings – Top 15 Vendors for Total Professional Services by $ and Market Share

Maintenance Services
Total Retail Services Installed Maintenance Worldwide Forecast Through 2026
Vendor Rankings – Top 15 Vendors for Software Maintenance Services by $ and Market Share
Vendor Rankings – Top 15 Vendors for Hardware Maintenance Services by $ and Market Share

Systems Integration
Total Retail Systems Integration Worldwide Forecast Through 2026
Vendor Rankings – Top 15 Vendors for Systems Integration Services by $ and Market Share

Infrastructure Services
Total Infrastructure Services Worldwide Forecast Through 2026
Vendor Rankings – Top 15 Vendors for BPO Services by $ and Market Share
Vendor Rankings – Top 15 Vendors for IT Outsourcing Services by $ and Market Share
Vendor Rankings – Top 15 Vendors for IT Outsourcing Services by $ and Market Share

Strategy Services
Total Retail IT Strategy Services Worldwide Forecast Through 2026
Vendor Rankings – Top 15 Vendors for Strategic Consulting Services by $ and Market Share
Vendor Rankings – Top 15 Vendors for Application Development Services by $ and Market Share
Vendor Rankings – Top 15 Vendors for Digital Transformation Services by $ and Market Share

Vendor Profiles (see above for what’s included)

Methodology

Appendix – Categories of Software Included

What Segments Constitute Your Definition of Retail and Hospitality?

We use the following segments to define Retail and some examples.  This research uses all of these segments.

Food/Grocery (Kroger, Safeway, Trader Joe’s, Wakerfern, Tesco,) Drug Stores (Walgreens, CVS)
Superstore/Warehouse Clubs/Hypermarkets (Walmart, BJ’s Wholesale, Costco, Auchan)
Mass Merchants (Target, Meijer Stores)
Department Stores(JC Penney, Sears, Kohls, Kaufaf, Marks and Spencer) Specialty Hard Goods(Home Depot, Lowes, Best Buy, Rooms to Go, Canadian Tire) Specialty Soft Goods(H&M, Limited Stores, Wet Seal) Convenience/Gas/Forecourt(Chevron, Exxon,)

Fast Food (McDonald’s, Subway, Burger King, Pizza Hut, Taco Bell)
Bar/Restaurant (Applebees, Buffalo Wild Wings, Chipotle)
Lodging (Marriott, Sheraton, Hilton)
Entertainment:Casinos and Cruises (Carnival, Harrah’s, Wynn, Caesar’s Palace)
Entertainment:Museums, Theme Parks, Theaters, Others (Disney, Universal, AMC, Carmike)

What types of services are included?

We look at 11 specific categories of IT Services:

• Software Maintenance: Activities related to bug fixes and ongoing updates of existing software systems.
• Hardware Maintenance: Traditional Break/Fix maintenance of hardware products throughout stores and retail enterprise but does not include the installation services.
• Systems Integration, On-Premise: These are services provided onsite to integrate different systems. This might include a combination of hardware and software. It is here where we include installation services.
• Systems Integration, SaaS: These are software integration and installation services provided in private or public cloud infrastructures primarily to integrate software systems that are exchanging data.
• Strategic Consulting: These are services generally provided at a higher corporate level that revolve around architecture and optimization of systems for speed, accuracy, redundancy and security. These are then implemented as consulting projects or other categories for specific projects.
• Business Process Outsourcing (BPO): These are the systems services and non-primary business IT activities that are contracted out to a 3rd party that allow for retailers to focus on their core competencies.
• IT Outsourcing: Unlike the BPO outsourcing that is designed more around non-primary business IT activities, here are we are talking about the core IT functions that are related to application and infrastructure solutions.
• Application Development: This refers to the activities related to custom software development and includes a wide range of functionalities including solutions from scratch or customizing software to run in the way the retailer wants to operate.
• Digital Transformation: These are services focused around the intentional acts and acceleration of transforming business activities, processes and competencies to leverage the changes and opportunities afforded by digital technologies.
• Cloud Services: Once again a very broad category but includes services provided to users on demand via the internet and include SaaS services as well as Infrastructure services.
• Other/IT: This is a catch-all category of all the other things that the IT department has to do that are not part of the definitions outlined. Some examples include Big Data, Risk, Fraud, Security, Commerce, Payment, Emerging Technologies, Eco-sustainability, Education, Training, Portals, Content Management, Quality Assurance, Application Load Management, etc..

Is this put together by primary research, secondary research?

Yes, all of the above.  We utilize our Sophia Data Service, WorldView IT Sizing Forecast Model, custom primary and secondary research and vendor interviews to put this together.  Contact us and we would be happy to go over the methodology with you.

Can I share this study in my company?

Yes, if your company has an advisory relationship with IHL, you can share internally.

Can I share the data externally?

With written permission from IHL we allow certain components to be shared externally.  However, as a standard rule IHL research studies and content cannot be shared externally with clients and partners.  That being said, we are open to individual queries and do make exceptions for marketing purposes with the appropriate licenses.  Once again, we just ask those be made in writing to ihl(at)ihlservices.com.

This research is available individually or via a subscription of our Retail Executive Advisory Program.  Please click here or contact us at ihl@ihlservices.com and we can customize a program specifically for your company.

Each of the research studies comes with an Enterprise license so the data, studies can be shared internally among your entire team. For more questions and to begin, contact us.