The technology consulting sector is heading for unprecedented growth, with new analysis predicting the global market will surge past $400bn (£312bn) by 2026 as companies urgently modernise their outdated systems.
Unprecedented Growth Driven by Digital Transformation
According to a landmark study from Source Global Research, the technology consulting market is on a steep upward trajectory. The market expanded by 4 per cent in 2024 and is forecast to grow by 6 per cent in 2025 before accelerating to a 7 per cent increase in 2026.
This remarkable expansion is being fuelled by a widespread corporate rush to upgrade legacy infrastructure and embrace new technologies. The research reveals that a staggering 94 per cent of clients intend to boost their investment in digital technologies, particularly artificial intelligence, within the next 18 months.
Big Four Dominate but Innovation Wins Business
The report identifies the Big Four professional services firms – KPMG, Deloitte, EY, and PwC – as primary beneficiaries of this spending boom. Approximately 80 per cent of respondents indicated they are most likely to engage these four giants for technology consulting services over the coming year.
These firms are perceived as particularly strong in crucial areas including technology strategy, productivity enhancement, and implementation support. Their substantial investments in proprietary technology, especially AI tools, have positioned them to deliver transformed services in an increasingly competitive landscape.
However, the research also signals opportunity for agile competitors. Nearly 40 per cent of clients expressed willingness to explore partnerships with new firms that can provide innovative solutions to their technology challenges.
Rising Prices and Shifting Expertise Dynamics
As demand escalates, consulting costs are expected to climb. Over a quarter of businesses anticipate price increases for technology advice, even as broader consultancy spending shows signs of slowing.
Nick Jotischky, head of market trends at Source Global Research, explained the trend: "Technology buyers highlight that they expect price rises because consulting firms will use more proprietary tools such as custom-built AI models and data analysis engines to meet their business challenges."
He added: "But they also recognise that prices will increase because of greater buy-in from senior levels of the organisation and that the work will be of strategic importance."
Paradoxically, while companies are rapidly building internal IT capabilities – with over 80 per cent predicting their internal IT teams will double in size within five years – a persistent skills shortage continues to drive demand for external expertise. The research shows that 81 per cent of organisations plan to increase their use of technology consultants in the next year.
This creates a complex landscape where businesses are simultaneously strengthening internal teams while relying more heavily on specialised external partners to navigate their digital transformations effectively.
