Key Business Services Industry Statistics
$12.5B
The amount of damage the U.S. reported due to cybercrime in 2023
57%
of companies outsource non-core business operations
+$1.5T
Forcasted worldwide IT service spending forecast
Source: Statista
Business Services Industry Overview
The business services industry encompasses consulting, process outsourcing, and technology solutions. This industry is crucial for helping businesses stay ahead of market trends, maintain competitiveness, and enhance efficiency. Valued at $133B in 2023, the U.S. business software and services market is expected to grow at an 11% CAGR through 2030.*
Industry Key Trends
- As wages rise, business process outsourcing (BPO) companies become more attractive to clients because they are less expensive than permanent hires
- The Great Resignation drove companies to BPO firms for hiring and training, a trend amplified by competitive job markets
- Generative AI is transforming marketing through unparalleled speed in data analysis and information synthesis, enabling highly customizable strategies
- New virus variants raise data security concerns, increasing the demand for cybersecurity services and blockchain technology
- The growing focus on Environmental, Social, and Governance (ESG) has boosted services like energy-efficiency consulting and green supply-chain management
- Integrated IT solutions provide real time analysis to companies, allowing owners to make quick decisions based on actual underlying trends within their business
- Healthcare companies continue to digitize records and seek out third party billing agencies to manage these records
U.S. Business Services Market
by Service, 2023
Sources: IBIS World, Statista, Grandview Research
Percentage of Companies that Outsource
by Size
Source: Zippia
Top 5 Business Services Industry M&A Drivers
- As AI, automation, and digital transformation grow, companies use M&A to quickly and efficiently integrate these technologies
- Rising demands for marketing and advertising are driving firms to pursue M&A to expand their services and capabilities
- Growing ESG concerns are driving companies to enhance sustainability quickly, making M&A attractive
- Companies increasingly outsource non-core activities to focus on primary functions and reduce costs
- Data security concerns elevate technological demands, creating a divide between traditional and IT-integrated business service companies
Global Deals by Subsector
Source: R.L. Hulett
Number of U.S. M&A Transactions
Source: Pitchbook, Cascade Partners
Global Deal Volume by Size
Source: R.L. Hulett
| Date | Target | Acquirer | Location |
| Jul-24 | International Business Machine | StreamSets | CA |
| Jun-24 | Resideo Technologies | Snap One | UT |
| Mar-24 | H.I.G. Capital | Alight’s Payroll & Professional Services | IL |
| Feb-24 | First Advantage | Sterling Check | OH |
| Feb-24 | Charlesbank Capital Partners | Rise Growth Partners | TX |
| Jan-24 | Main Street Capital Corporation | Johnson Downie | TX |
| Jan-24 | Capital Square Partners | StarTek | CO |
Select Transactions
