IT Break-Fix Services

IT Break-Fix Services Global Market Outlook

• Global IT software spend is expected to reach $87.3 billion in 2023, driven by digitalization, predictive analytics, AI and cloud adoption

• Cloud IT infrastructure will reach $100 billion in 2024, representing almost 60% of the total IT infrastructure spending, and this new IT infrastructure model will impact IT asset life cycle behavior which in turn will change the dynamics of break-fix services market

Global Software & Hardware Support Services Spending

Market Outlook

Software Support Services

• The software support services market is expected to register a CAGR of 3.2% during the forecast period, 2020-2023

• For most enterprises, fragile ecosystems included providers of critical IT services. Additionally, work-from-home (hybrid working model) mandates have led the service providers to ensure that mission-critical enterprise customers have the necessary tools and technologies to enable the security, speed, low latency, quality, and the overall efficacy of services provided ​​

Hardware Support Services

• Hardware maintenance and support services are provided to prevent any type of device failure and to provide remedial services after the problem occurs. This could happen both on-site and at a centralized repair depot

• In hardware support services, networking, servers and storage are the key spending areas

Break-fix Services: Drivers and Constraints

Drivers

Adoption of IoT Solutions

• IoT solutions connects hardware devices, embedded systems, communication systems, managed services and key enabler in smart cities, smart homes and smart healthcare. High adoption of IoT devices and systems is expected to change and drive the break-fix services landscape

Cost savings and improved operational efficiency

• Pandemic has forced all the businesses to improve operational efficiencies and focus on cost-saving measures. Furthermore, businesses have faced extreme pressure from changing market dynamics, competitors, regulatory and macroeconomic forces

Enhanced customer experience

• AI, IoT, and RPA are transforming the customer experience across FinTech space, enabling the preference for scalable IT infrastructure in the wake of increased P2P transfers and global payments, use of contactless bank cards, and management of cryptocurrency via digital channels

Constraints

Emerging Technologies & Skillset gap

• Adopting cloud and emerging technologies brings significant integration and upskilling challenges for the break-fix service providers

• Enterprises face problems of lack of skill for operating the IoT and cloud solutions. This factor is further compounded by solution complexity, as many IoT use-cases demand almost real-time operational insights

Vendor lock-in

• Due to the adoption of cloud computing and other emerging technologies, the break-fix services landscape is experiencing significant transformation. The cost of switching to a different vendor is high in cloud computing, resulting in vendor lock-in