As the TMT services market grows—enterprises and providers can’t afford to get comfortable in their legacy relationships

• HFS has estimated the TMT (telecom, media, and technology) services market to be over $150 billion per year going into 2021 based on our recent Top 10 report covering 13 of the leading service providers in the space. These 13 are estimated to make up 20% of the market, with the other 80% including their peers, as well as hyperscale cloud services providers, telecom firms providing services, and the vast ecosystem of niche tech and connectivity players.
• We see the market growing in the region of 10% year-on-year (YoY), to over $200 billion in 2023 (based on 14% and 11% YoY growth over the past 2 years).
• Some of the industry’s main growth drivers are seen throughout our recent TMT Top 10 report: content and network providers are all looking to monetize the customer experience; 5G and IoT technologies are being monetized in TMT but also in other industries; ecosystem defining disruption is coming from digital natives—forcing the convergence of TMT; macro trends are affecting micro ones in the sub-segments of TMT; customers want more than managed services from providers: they want business model transformation built on consulting and customer experience design thinking, and a deep understanding of the industry and an ecosystem of expert partners.

The Bottom Line: The TMT industry is converging, but also expanding—and within it, there are hyper-specialities in “micro-verticals”. For many service providers, TMT practices are new—and although they have long established relationships with TMT firms—many are based on legacy services. The new demands of the TMT industry, and all its innovation and need for consulting and design, needs to be integrated with delivery and managed services. This will truly start to differentiate TMT enterprises and their services providers over the coming years.