Microsoft faced a significant setback in its software and IT services division

Recent research findings have revealed a shift in market preferences for commonly used IT services and software, signaling a changing landscape in this key sector.

Recent figures released by TechMarketView indicate that Amazon Web Services (AWS) achieved notable growth in the UK software and IT services sector, resulting in Microsoft losing its position in the top three rankings.

The recent financial figures revealed that TCS, a former leader in the market, achieved a revenue increase to £3.491 billion in 2022, securing the third position. Accenture maintained its second-place position with £3.623 billion, while AWS continued to dominate the market with £3.78 billion in revenue. Meanwhile, Microsoft slipped to fourth place with £3.382 billion. Given the close proximity of the figures, it is expected that the rankings will undergo periodic adjustments.

Amazon Web Services(AWS) reigns supreme

The continued success of AWS in the cloud market is evident as it consistently outpaces Microsoft Azure, attaining higher levels of popularity and delivering superior performance across various market segments.

The top ten players in the UK software and IT services market included Capgemini and Capita, recording revenues of £2.352 billion and £2.32 billion, respectively. Joining them were industry stalwarts such as IBM, HCL Tech, Oracle, and Atos.

TechMarketView has put forth the notion that the UK software and IT services industry could be on the cusp of a slowdown, with projections indicating its potential persistence until 2026. This prediction comes amid Britain's ongoing productivity crisis, which serves as a catalyst for continued investments in the technology domain.

The expansion of the IT services sector does not always reflect parallel progress in productivity. Multiple studies indicate that companies are encountering difficulties in providing the appropriate office software, leading to the inefficient use of licenses and a failure to adequately support their employees.

According to Georgina O'Toole, Chief Analyst at TechMarketView, strategic investments have the potential to alleviate the ongoing productivity crisis in Britain to a certain extent:

"The UK tech industry, through targeted investments, has the potential to significantly enhance the productivity levels of client organizations, thereby making a meaningful contribution to the broader productivity landscape in the UK."

In the midst of the economic challenges confronting the UK and global markets, the recent slowdown in growth may indicate a strategic focus among IT leaders to fine-tune their services, prioritizing offerings that have a tangible positive impact on workforce productivity.

Source