Glance at the ITSM Market
The IT Service Management (ITSM) market is undergoing strong growth, fueled by the widespread shift to cloud-based technologies and the necessity for effective management of IT operations. In 2023, the worldwide market for IT Service Management (ITSM) was estimated at USD 10.5 billion. It is expected to more than double, reaching USD 22.1 billion by 2028, with a compound annual growth rate (CAGR) of 15.9% forecasted for this five-year period, according to MarketsandMarkets. The upward trajectory is anticipated to persist, with projections suggesting the market will approach USD 28.7 billion by 2032, as reported by Allied Market Research. Within this dynamic landscape, ServiceNow has distinguished itself as a leading force in the cloud-based workflow platform sector. With its robust solutions, ServiceNow substantially boosts operational efficiency for enterprises.
Poised for significant growth, the company leverages its advanced technology and a comprehensive suite of services, affirming its position as a key player in facilitating enterprise-level digital transformations and streamlining IT operations management. The ServiceNow tech services market is projected to experience a compound annual growth rate (CAGR) of 17.4% from 2023 to 2033, growing from $24.8 billion to $123.2 billion according to Future Market Insights.
Trends in ITSM driven by ServiceNow
Several dynamics shape service management, with certain trends poised to make a significant impact this year and beyond in ITSM. ServiceNow-enabled transformations and innovation align broader market trends and business challenges analyzing 6 key trends based on platform capabilities, industry impact, and service provider influence.
- Global Service Delivery Optimization: Organizations are leveraging ServiceNow to consolidate, standardize, and optimize global service delivery, enhancing both internal and external client services with functionalities like CSM and FSM.
- Advanced AI/ML Integration: ServiceNow is advancing its AI and ML technologies, improving customer service experiences and integrating these capabilities with CRM and field service management.
- Process Digitization and Optimization: ServiceNow collaborates with Celonis to use data for process enhancement, utilizing its low-code/no-code tools to speed up digital workflow implementation.
- Transforming Legacy Systems: ServiceNow's platform and low-code/no-code tools are transforming legacy systems, providing new levels of insight, scalability, and speed.
- Industry-Specific Solutions and ESG Management: ServiceNow is developing targeted industry solutions and enhancing ESG data management capabilities for sectors like education, healthcare, and finance.
- Business Resilience and Innovation in Operations: ServiceNow enhances business resilience by mapping services to technologies and supports innovative operational models for platform governance and sustainment.
Enhanced Partner Ecosystem Program
ServiceNow continually evolves its offerings to better meet the needs of modern enterprises, integrating state-of-the-art technologies such as AI to drive efficiency and innovation.
The introduction of AI-driven features like Now Assist, which is part of the Vancouver platform update, uses generative AI for IT service management, HR, customer service, and creator workflows.
As ServiceNow continues to expand its platform capabilities and market reach, the enriched Partner Ecosystem Program plays a crucial role in nurturing growth.
Notable Transactions for ServiceNow Partners
The digital transformation landscape is increasingly marked by acquisitions of ServiceNow partners, highlighting a strategic shift toward enhanced enterprise solutions. As companies worldwide seek to streamline operations and boost efficiency, ServiceNow has become central to these efforts. The growing acquisition trend among mid-sized IT Services and Digital Transformation is driven by the growth opportunity in the ServiceNow segment and desire to Buy vs. Build the specialized capabilities ServiceNow partners bring in IT service management, asset management, and operations management. These synergistic investments allow firms to bolster their broader Digital Transformation portfolio with ServiceNow solutions and stay competitive in this rapidly evolving market.
Some of the key acquisitions of ServiceNow partners are below:
Thirdera, a global leader in ServiceNow services, has acquired SilverStorm Solutions, an Elite-level ServiceNow partner based in Europe. Established in 2002, SilverStorm is known for its bespoke solutions and services like implementation and support. This acquisition supports Thirdera’s strategic expansion into Europe, responding to the rising demand for cloud-based solutions that facilitate remote work, such as ServiceNow’s Customer Service and Order Management solutions. With SilverStorm’s 160+ consultants and comprehensive certifications, Thirdera enhances its service capabilities and client reach in Europe. SilverStorm’s notable clients, including the United Nations and Banco Santander, bolster Thirdera’s status as the largest pure-play ServiceNow partner globally. This move expands Thirdera’s geographical footprint and specialized talent pool, reinforcing its market leadership and driving digital transformation across its client base. Thirdera was consequently acquired by Cognizant, to bolster Coginzant’s ServiceNow capability in the European market.
Inetum's acquisition of Unifii, a top ServiceNow partner in the UK and Ireland, significantly strengthens its position as a leading European ServiceNow partner. This merger increases Inetum's resources to nearly 500 ServiceNow experts and over 2000 certifications across Europe, boosting its presence in the UK, Ireland, Eastern, and several Western European countries. Unifii contributes extensive experience and a solid customer base in finance, technology, and public sectors, enhancing Inetum’s service range and depth. This strategic move aims to dominate the European ServiceNow market by leveraging Unifii's expertise and track record in digital transformation. This acquisition underscores Inetum’s commitment to expanding its capabilities within ServiceNow's partner ecosystem, meeting the increasing demand for innovative digital workflow solutions and supporting customers' digital transformation journeys.
SoftwareOne, a Swiss technology provider with a global presence, has acquired Beniva Consulting Group, a Canadian company specializing in ServiceNow, IT Operations Management (ITOM), and cloud advisory. Founded in 2000 with 8,706 employees in 90 countries, SoftwareOne offers services like software licensing, asset management, and cloud solutions. Beniva, established in 2016 in Calgary and employing 59 people, enhances SoftwareOne's process automation and service management capabilities. This acquisition strengthens SoftwareOne's IT Asset Management (ITAM) services by integrating Beniva's specialized knowledge, positioning the company to better support clients in software and cloud portfolio optimization, and reinforcing its role in the competitive global market for end-to-end digital transformation solutions.
Future Outlook
The ServiceNow market is at a pivotal point, with significant growth prospects driven by technological advancements, new investment opportunities and an expanding global presence. The focus on cloud-based solutions, and tailored industry-specific services will continue to drive the market forward. ServiceNow Partners and service providers are expected to play a crucial role in this evolution, emphasizing innovation, collaboration, and strategic expansion to meet the diverse and growing demands of the digital era. As the market evolves, ServiceNow Partners can solidify their position as a leading player in the ITSM sector, through building a deeper relationship with ServiceNow and strategic investments.
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