The technology consulting market is anticipated to grow by 7 per cent in 2026, reaching over $400bn (£312bn) as businesses race to upgrade legacy infrastructure to align with new tech.
According to a new report by Source Global Research, technology consultants are in high demand, with the market growing 4 per cent in 2024 and expected to grow 6 per cent in 2025 and 7 per cent in 2026.
The increase in demand comes as the majority of businesses are eager to upgrade their legacy infrastructure as soon as possible, with the report noting that 94 per cent of clients plan to increase spending on digital technologies, such as AI, over the next 18 months.
The businesses in this report noted that clients are growing their in-house IT expertise, with over 80 per cent predicting the internal IT teams will double in size over the next five years.
However, the shortage of IT expertise internally has been an opportunity for external consultancy firms, as 81 per cent of respondents intend to increase their use of consultants over the next year.
As a result, over a quarter have said they expect consulting service prices – for technology advice- will increase as broader consultancy spending slows.
Nick Jotischky, head of market trends at Source, explained: “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.”
“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,” he added.
Big Four dominates, but clients keep eyes open
It is the Big Four firms that will benefit from the surge, as 80 per cent of responses pointed to KPMG, Deloitte, EY, and PwC as the firms most likely to be used over the next year.
The Big Four are perceived in the report as being strong in key areas such as technology strategy, productivity improvement, and technology implementation.
The firms have been investing billions of dollars in technology, particularly AI, to transform their services and remain competitive in an increasingly difficult market.
After most of the Big Four firms recently reported a decrease in revenue from their consultancy arms, the report noted that the UK’s overall consulting sector, including technology consulting, is expected to grow healthily in the coming years.
The Management Consultancies Association (MCA) report in January stated that the UK consulting sector would grow by 6.4 per cent over 2025, as businesses turned to consultants for tech advice.
Despite the appetite for the Big Four number, the report also points out that nearly 40 per cent said they are prepared to branch out and work with new firms that can offer innovative solutions.
Those firms that can understand companies’ pain points with their existing technology infrastructure and offer innovative solutions are well-positioned to benefit from increased spending plans.
This means that while technology advancements for businesses are seeing an increase in demand for consultants, AI is also a hindrance, as clients want to see results.