IT service providers benefited from digitization and transformation pressure in 2021

In the second year of the corona crisis, there was a strong upswing in the market for IT services in Germany. While IT service providers were able to grow by 4.7 percent in 2020, the average growth of domestic sales in 2021 was 13.1 percent. These are the first results of the Lünendonk study 2022 “The Market for IT Services in Germany” by the market research company Lünendonk & Hossenfelder. […]

According to Mario Zillmann, Partner at Lünendonk, the growth figures in the IT services market can be attributed to two central points: “Companies from all industries are facing enormous digitization and transformation pressure and – often due to a lack of their own experience – need external expertise. Therefore, the demand for digital and IT experts is higher than ever before due to the catch-up effects of the digital transformation that are now taking place. In addition, we see an area of tension between high demand for external digital and IT experts and a very tense specialist market. As a result, competition for IT experts is intensifying, which in turn leads to higher fees for some topics.” Tobias Ganowski, Junior Consultant at Lünendonk, adds. “In this market segment, IT service providers expect an average increase in revenue of 12.9 percent for 2022 and 12.6 percent for 2023.”

Lünendonk-List “IT Consulting and System Integration”

Companies that generated more than 60 percent of their sales with management and IT consulting, system integration, software development and implementation were included in the ranking, according to a statement from Lünendonk.

Accenture continues to be the market leader with an estimated German sales of 2.65 billion euros for the year 2021 (2020: € 2.2 billion). On the other hand, there is a new second place on the Lünendonk list this year: with a sales increase of 17 percent to 1.7 billion euros, Capgemini overtakes the previous number two IBM, which is now in third place with a German sales of 1.65 billion euros. The top 5 are completed by T-Systems in fourth place and NTT Data in fifth place.

There are some important changes in the current Lünendonk list: Due to the takeover of the internal IT service provider of the Deutsche Bank subsidiary Postbank, Postbank Systems, Tata Consultancy Services (TCS) has a changed range of services and is therefore listed in the Lünendonk list of “Leading IT Service Companies in Germany”, as well as Allgeier SE. Atos is no longer represented in the Lünendonk list with its proportionate IT consulting and system integration revenues, but is also listed in the Lünendonk list “Leading IT Service Companies in Germany” with the total revenue. In the course of the sale of ESG Mobility to Cognizant in 2021, ESG has a stronger focus on engineering services and therefore falls out of the Lünendonk list of leading IT consulting and system integration companies.

The four IT consultancies Senacor, init, Nagarro and Convista are therefore new in the Lünendonk list in places 22 to 25.

The “IT-Service” ranking

The ranking includes IT service providers who generate more than 50 percent of their revenue from IT outsourcing, hosting, managed services and other data center services on the external market. This year, the ranking was extended to a top-15 due, among other things, to the change of Allgeier and TCS to this Lünendonk list.

Despite a 10 percent decline in sales, T-Systems continues to hold the top position of the leading IT service companies with an estimated turnover of 2.0 billion euros (2020: € 2.2 billion). Unchanged in second place is Atos with a total turnover estimated by Lünendonk in Germany of 1.9 billion euros. This is followed by TCS with an enormous jump in sales due to the acquisition of Postbank Systems, while the IBM spin-off Kyndryl is in fourth place with estimated sales in Germany of 770 million euros. Due to the new addition of TCS, Datagroup is slipping one place down to sixth place despite an increase in sales of almost 25 percent.

In addition to Allgeier and TCS, Tech Mahindra has entered the Lünendonk list in tenth place this year. As a result, Cologne-based Q.beyond is slipping out of the top 10 ranking by two places to twelve, despite an increase in sales of 7.3 percent.

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