IT Consulting Industry “Booming” (Inc. Magazine Top 11 Best Industry)

If you’re tired of well-intentioned friends and family members making largely unfounded and naive remarks, like, “Hey, sorry to hear the IT consulting industry is in a recession,” you’re in luck! You can now prove them wrong, right from your mailbox, bookstore, newsstand, magazine rack, smartphone, or tablet.

Inc. Magazine, one of the world’s most prestigious business magazines, has in its June 2012 issue declared the IT consulting industry to be on its top 11 best industries for starting a business.

The subhead of the article, by John McDermott, states “IT consulting is booming” largely because of massive migrations to mobile computing solutions and cloud computing infrastructure.

Why Inc. Loves the IT Consulting Industry

Topping the list was the 8.3% growth rate experienced in the IT consulting industry since 2007.

While annual growth is expected to slow to approximately 2.9%, the 2017 version of the industry still is expected to reach $379 billion, with a “b.” 

McDermott’s reasons for the IT consulting “love” also include the push to replace desktop computers with mobile devices that allow for anywhere, anytime productivity. 

Also cited in the article is the IT consulting industry’s 8.1% profit margin (Source: Sageworks). 

Quoting data from IBISWorld, the sidebar confirms the high level of fragmentation that most IT channel insiders have known about for decades. What size is the average IT consulting firm? Just 4 employees. Not 40. Not 400. Just 4.

Best Vertical Markets for IT Consulting Firms to Target

Within this same article, McDermott spotlights two front-burner vertical markets worth targeting:

• Energy

• Healthcare 

Why? Both industries have lots of financial pressure to move more customer and patient interactions online, presumably to secure websites that are mobile-enabled. 

McDermott also mentions the long-standing market opportunities in placing consultants full-time on-site at clients, as well providing soup-to-nuts outsourced IT services.

What Other Industries Made the List Besides IT Consulting?

So, what do you tell those well-intentioned friends and family members who have a little entrepreneurial envy? Inc. Magazine has 10 other solid ideas for the best startups. 

For the tech-inclined, consider:

• Big data

• E-commerce

• Online publishing

• Mobile gaming/social gaming

• Supply chain 

For the more tech-phobic, consider

• Environmental consulting

• Full-service restaurants

• Pet care

• Residential construction

• Water conservation

Demand Hot, But Supply of IT Talent Still an Issue

The Inc. Magazine article concludes by reminding readers of one of the IT industry’s most long-standing problems: cost-effectively recruiting and retaining talent. 

As there are still shortages of IT workers in key areas, the IT consulting industry effectively competes with its prospects and clients for the “best and brightest.” 

So in the end, perhaps the best advice you can offer the well-intentioned friends and family members is to, “Take some classes and get retrained for a hot, in-demand skill set in IT.” 

And to find out why Inc. Magazine is on our list of top websites to bookmark for those starting an IT consulting business, see Starting a Computer Business? Bookmark These 8 Web Sites. 

Editor's Note: If you want your IT consulting business to boom, be sure to check out How Managed IT Services & IT Consulting Firms Accelerate Inbound Revenue Generation.

What kind of flack do you get from friends and family members that are largely clueless about the IT consulting industry? What do you tell them? And what’s your five-year outlook for IT consulting? Please share your thoughts in the Comments section below.

And to follow-through on the tips introduced in this short article, be sure to watch the Inbound Revenue Acceleration Webinar for Managed Services & IT Consulting.

Creative Commons Image Source: flickr Nina Matthews Photography