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Texas Information Technology Services - Office of the Governor ...

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Overview<br />

I<br />

nformation technology (IT) services are an<br />

important and growing part <strong>of</strong> <strong>the</strong> <strong>Texas</strong> economy,<br />

directly employing over 156,500 across <strong>the</strong> state.<br />

The <strong>Texas</strong> IT services industry is significantly<br />

specialized in <strong>the</strong> computer systems design and in <strong>the</strong><br />

data processing and hosting areas, more than any o<strong>the</strong>r<br />

state except California. These two areas account for<br />

<strong>the</strong> majority <strong>of</strong> <strong>the</strong> state’s IT services firms and<br />

employment.<br />

This report covers <strong>the</strong> broad and diversified range <strong>of</strong><br />

IT services companies, including s<strong>of</strong>tware; gaming<br />

and Internet publishing; web search portals and<br />

services; data storage, processing and hosting;<br />

computer systems design and consulting; Internet<br />

service providers; and related services.<br />

While information technology workers are concentrated<br />

in traditional IT sectors such as s<strong>of</strong>tware and<br />

computer systems design, <strong>the</strong>se skilled pr<strong>of</strong>essionals<br />

are also employed across a range <strong>of</strong> industries, from<br />

financial services to energy to health care. As a result,<br />

IT services are embedded throughout most industries.<br />

The rise <strong>of</strong> online services and cloud computing has<br />

changed <strong>the</strong> scope <strong>of</strong> IT services, leading to fur<strong>the</strong>r<br />

industry fragmentation. These changes have fostered a<br />

related trend, in which companies from o<strong>the</strong>r industries<br />

are increasingly moving into <strong>the</strong> IT services<br />

<strong>Texas</strong> is more specialized in data processing<br />

& hosting and computer systems design<br />

services than most o<strong>the</strong>r states.<br />

arena. Examples <strong>of</strong> companies following this trend are<br />

<strong>the</strong> world’s No. 3 supplier <strong>of</strong> PCs, Dell Inc., and one<br />

<strong>of</strong> <strong>the</strong> nation’s largest communications companies,<br />

AT&T, both <strong>of</strong> which are headquartered in <strong>Texas</strong>.<br />

These firms have both acquired IT consulting and<br />

s<strong>of</strong>tware companies over <strong>the</strong> past few years in order to<br />

expand <strong>the</strong>ir IT service <strong>of</strong>ferings.<br />

<strong>Texas</strong> IT <strong>Services</strong> Employment<br />

by IT Service Sector<br />

Data note: This report covers activities categorized in <strong>the</strong> North American Industry<br />

Classification System (NAICS): Computer Systems Design etc. (5415); Data Processing<br />

etc. (518); S<strong>of</strong>tware Publishers (5112); Internet Publishing etc. (51913);<br />

and Specialized Telecommunications etc. (517919).<br />

Source: <strong>Texas</strong> Workforce Commission<br />

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