The Data Processing and Hosting Services industry provides services related to hosting or data processing used for a variety of IT-related activities, ranging from web hosting to automated data entry services. During the past five years, the industry performed well as businesses have increasingly outsourced information technology (IT) infrastructure needs. Industry services, which are provided on a subscription basis, have been in strong demand during the current five-year period. Greater investment in the outsourcing of application hosting to specialized companies as an alternative to in-house hosting is expected to boost demand for industry services. The next five years are expected to be largely positive for the industry. Consolidation in downstream industries will motivate businesses to outsource IT needs to the industry, as systems become too costly to maintain in-house. At the same time, buyers are expected to abandon the traditional bundling model in favour of a diffuse network of providers for their various IT needs.
Operators in this industry provide specialized data processing or hosting activities. Data processing services provide specialized reports from information supplied by clients. Hosting services can include web and application hosting and range from automated data entry to processing such data. This industry does not include the websites themselves or the revenue earned by their owners.
This report covers the scope, size, disposition and growth of the industry including the key sensitivities and success factors. Also included are five year industry forecasts, growth rates and an analysis of the industry key players and their market shares.