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Industry at a tipping point.

From 2013 to 2014, the total industry grew by 3.8%, from $738 billion to $766 billion. Our industry of information, media, and technology is a blend of fast-growing software, services, and tech companies and moderate-growth traditional content publishers and media. Hot spots are workflow solutions providers and data analytics-intensive businesses, startups, and newcos (1) that reflect the opportunities arising from the rapid convergence of content, technology, software, devices, people, and workflows.

Search and aggregation continues as the growth front-runner, but we predict that marketing automation, analytics, and CRM (customer relationship management) will edge from second into first place during the forecast period. Human capital management is the third growth hot spot, with all growing strongly well over the industry average growth of 3.8% in 2014. Along with financial; credit; and governance, risk, and compliance, these flourishing areas will continue to drive industry growth in the next several years.

Transformative change has long been the norm that drives success or failure in the information industry. This year's meta-theme, Tipping Point, reflects different and bigger change in which soon everything is going to be very different, with forces in play that will fundamentally alter the nature of knowledge work. We identified 10 tipping points that are likely to have profound implications:

1. Millennials and How They Work

2. Machines Getting Smarter and Taking Charge

3. Enterprise Getting Into the (Content) Game

4. Hyper-Niche and Verticalization to Achieve Scale

5. Hyper-Scale Goes Big

6. Hyper-Aggregation Driving a New Wave of Disintermediation

7. Web Tipping to Apps

8. Convergence of Face-to-Face: Community, Commerce, Content, and Certification

9. Re-Platforming

10. Why Should I Work for You?

To understand these trends and opportunities, successful organizations that are looking to leverage these tipping points will pay close attention to the key funding sources for our industry: end users who buy and consume content, enterprise information managers who spend for paid content, and marketers and advertisers who decide the spending allocation for their marketing mix.

Permanent shifts are occurring and driving the industry to its tipping point. We see an equal number of opportunities and areas of unmet needs as well as holes in the market for innovators to fill, especially regarding high-quality company information, integrated access to multiple resources, cybersecurity, and horizontal and vertical markets.

Publishers, information providers, and enterprise information management executives who disregard these tipping points could soon find themselves at a competitive disadvantage. The winners are building muscle and capacity to seize these opportunities now.

For all the details, companies to watch, and our recap of essential actions needed to thrive and grow in our data-driven industry at a tipping point, download Outsell's Information Industry Outlook 2016 at bit.ly/IMkHxnp.

Leigh Watson Healy

Chief Analyst, Outsell

Endnote

(1.) "Newco" is a placeholder name for an established company's subsidiary, spinoff, startup, or proposed merger that's used to differentiate it from the existing company and maintain corporate control while it's often separate financially.
INDUSTRY ECOSYSTEM & SEGMENTS (USD Billions)

News                                      $74.4B
Yellow Pages & Directions                 $19.8B
B2B Trade                                 $31.8B
Market Research Reports & Services        $43.4B
Marketing Automation, Analytics & CRM     $25.8B
Marketing Services                        $116.8B
Credit                                    $12.7B
Financial                                 $42.7B
Risk & Compliance                         $45.2B
Legal & Regulatory                        $21.2B
Education Content, EdTech & HCM           $117.2B
Scientific, Technical & Medical           $33.7B
Search & Aggregation                      $96.8B
Consumer Books                            $47.5B
Consumer Magazines                        $37.2B

Billion Total Market                      $766.5

Note: Table made from pie chart.
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Title Annotation:trends in Information technology services industry
Author:Healy, Leigh Watson
Publication:Information Today
Article Type:Statistical data
Geographic Code:1USA
Date:Dec 1, 2015
Words:571
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