How do you use PESTEL analysis to evaluate the external factors affecting the IT consulting market?

2 Economic factors

Economic factors refer to the macroeconomic and microeconomic conditions that affect the IT consulting market. For example, you need to consider how the GDP growth, inflation, interest rates, exchange rates, unemployment, consumer confidence, and industry trends of the countries where you operate or plan to operate affect your business. Economic factors can influence the demand and supply of your IT consulting services, depending on how they affect the spending power and budget of your clients and competitors.

3 Social factors

Social factors refer to the demographics, culture, values, and behavior of the people and groups that affect the IT consulting market. For example, you need to consider how the age, gender, education, income, lifestyle, preferences, and expectations of your target market and stakeholders affect your business. Social factors can shape the needs and wants of your IT consulting services, depending on how they affect the perception and satisfaction of your clients and employees.

4 Technological factors

Technological factors refer to the innovation, development, and adoption of technologies that affect the IT consulting market. For example, you need to consider how the cloud computing, artificial intelligence, blockchain, internet of things, big data, and cybersecurity technologies affect your business. Technological factors can create opportunities and threats for your IT consulting services, depending on how they affect the efficiency, quality, and differentiation of your solutions and processes.

5 Environmental factors

Environmental factors refer to the natural resources, climate, and sustainability issues that affect the IT consulting market. For example, you need to consider how the energy consumption, carbon footprint, waste management, and environmental regulations of the countries where you operate or plan to operate affect your business. Environmental factors can affect the reputation and responsibility of your IT consulting services, depending on how they align with your environmental values and goals.

7 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?