Market growth drivers
The global systems integrator market is projected to be worth $195.5bn in 2022, a CAGR of 7.9%, driven by a focus on digital initiatives, particularly prioritised around consumer facing functions such as marketing, sales and user experience.
Many firms lack the skills or time resources to be able to undertake major IT projects in-house. Particularly for ERP systems the market is transitioning from services offered by a single monolithic provider such as SAP or Oracle to ‘post-modern ERP’ where systems are loosely coupled together. The emergence of low code or no code solutions looks set to disrupt the market further as many organisations demand reusable assets, skills and solutions to deliver applications at speed.
Systems integrators are also increasingly capitalising on the ‘trust crisis’. Consumer awareness of how their personal data is being collected and used by organisations has never been higher. Alongside a climate of increasing regulation such as the GDPR directive and a number of high profile data breaches and subsequent fines, there are a number of sobering reminders of the organisational liability associated with the storage of consumer data. Systems integrators can be vital in establishing, monitoring and reviewing the data processing procedures and creating the necessary safeguards.
Another key growth driver is the commitment by major vendors to partnership networks. For instance, Salesforce recently highlighted the channel as the key to growing its revenue to $20bn by FY22. SAP has also recently announced it will offer 12 months of free access for partners to test and demo systems on SAP/S4 Hana, as it views its partners as vital to achieving its cloud migration strategy. Major vendors recognise that partners provide a local point of contact and better customer service, particularly to the midmarket which they struggle to address directly.