The crucial role of ІТ service companies in driving the modern economy
Authors: Reznikov Roman , Turlakova Svitlana 
Published: November 2024

This article provides a comprehensive analysis of the vital role IT service companies play in driving the modern digital economy, focusing on their functions, benefits, and the challenges they encounter. The research begins with an overview of different types of IT service companies, including consulting firms, outsourcing companies, and cloud service providers. Each type is examined in terms of its specific contributions to technological innovation and business transformation. Companies such as EPAM, Accenture, Intellias, SoftServe, GlobalLogic, Endava, and Globant are highlighted for their pivotal roles in providing specialized services that enable businesses to leverage advanced technologies, foster digital transformation in different industries and development of new smart economy. To better understand the impact of IT-service companies on modern economy it was conducted a detailed comparative analysis between traditional consulting firms (the Big 4 and Big 3) and modern IT service companies. The analysis reveals how traditional firms are increasingly venturing into the digital and technology spaces, often collaborating with IT service providers to offer comprehensive digital transformation solutions. Examples of competition and collaboration between these entities illustrate the evolving dynamics in the consulting and IT services market. The article emphasizes the benefits of collaborating with IT service companies, such as cost-effectiveness, access to specialized knowledge in fields like AI, cybersecurity, cloud computing, and data analytics which is crucial in the process of business transformations and transition to so called smart economy. It includes case studies and examples of successful collaborations that have led to significant business growth and innovation, demonstrating the practical advantages of these partnerships. The role of IT service companies in facilitating digital transformation across various sectors is explored, with examples of successful digital transformation projects and their outcomes. These companies are shown to be instrumental in developing and implementing digital strategies, modernizing IT infrastructure, enabling data-driven decision-making, enhancing customer experience, and supporting agile transformation. Challenges faced by IT service companies are discussed, including talent acquisition and retention, rapid technological advancements, cybersecurity threats, and high client expectations. The article also addresses the competitive pressures from emerging markets and the need for continuous improvement and differentiation. It was identified future trends in the IT services market in modern economy which has significant presence of digital technologies. The adoption of agile and DevOps practices is also highlighted as a key trend driving efficiency and innovation in software development and IT operations. The conclusion reaffirms the importance of IT service companies in the development of modern economy, emphasizing their crucial role as strategic partners in innovation. The future potential of these companies is discussed, noting their contributions to shaping industries and economies globally. The evolving landscape of IT services is predicted to continue driving progress and enabling businesses to achieve new heights of success, underlining the indispensable role of IT service companies in fostering sustainable economic development.