Despite ongoing macroeconomic uncertainty and the increasing scrutiny of Information Technology (IT) spending, ServiceNow has sustained a good growth momentum within the IT market, reporting a 22% year-on-year growth in 2024. The ServiceNow services market has emerged as a gold rush within enterprise platform services, standing out as one of the fastest-growing enterprise platforms market, growing at a steady double-digit growth, compared to the broader enterprise platform services market growing around 3%. Building on this sustained momentum, ServiceNow has outlined an ambitious growth strategy and outlook – having surpassed US$10 billion in annual revenue in 2024, the company now targets US$16 billion by 2026 and aspires to be a US$30 billion firm in the long-term. With widespread adoption of the platform across industries and functions, the demand for services has expanded significantly, triggering a “gold rush” scenario among service providers, all racing to capture market share in the booming ServiceNow ecosystem.
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This strong momentum is being driven by enterprises focusing on higher ROI, value realization, artificial intelligence (AI)-infused solutioning, and scalability. This increase in demand is not yet fully matched by supply, as many providers continue to face challenges in scaling delivery capacity and accessing skilled talent. This situation has prompted both ServiceNow and its partners to evolve and innovate at speed and scale, meaning there is now growing pressure on them to act fast and shift from traditional models.
Growth beyond ITSM: Evolving portfolio and talent imperatives
ServiceNow’s transformation from a traditional IT Service Management (ITSM) provider into a broad enterprise workflow platform is at the core of this growth. The company has expanded aggressively into areas such as Customer Service Management (CSM) and HR Service Delivery (HRSD) with a series on inorganic investments and strategic organic investments. These new capabilities have broadened its addressable market, making it increasingly central to enterprise transformation agendas.
Customer and employee workflows now contribute around 30% of ServiceNow’s net-new annual contract value, with CSM matching ITSM in new customer wins. This marks a pivotal shift, underscoring the growing relevance of ServiceNow outside the IT function.
The expansion into new domains has also led to a sharp rise in demand for skilled talent, with the existing ecosystem struggling to keep pace. Providers are responding by rapidly building or acquiring talent pools and expertise across HR, Customer Service Management (CSM), and AI-driven automation to meet client needs.
As the ServiceNow services market grows, the competition for skilled talent and specialized capabilities is becoming more intense. To keep pace with rising demand, providers are investing heavily in both organic and inorganic routes. However, the rapid growth, evolving enterprise needs and the macroeconomy presents the right time and best case for providers to undertake inorganic growth strategies.
The coming wave of consolidation: Inorganic growth takes center stage
Looking ahead, we see the ServiceNow services market continuing the phase of consolidation, with leading global system integrators (GSIs) and other providers leveraging inorganic growth to expand their market presence and capabilities.
The below exhibit captures recent acquisitions, reflecting how providers are strengthening their ServiceNow portfolio and footprint to tap into hyper growth.
The acquired targets bring specialized capabilities in areas like AI, industry workflows, and managed services, which go beyond basic implementation. This also signals a broader shift toward more outcome-focused engagements, where providers are expected to deliver measurable business value, not just technical go-lives. As a result, Mergers and Acquisitions (M&A) has become a key lever for providers to scale quickly, access niche expertise, and meet evolving enterprise expectations.
Why the M&A trend will accelerate now
We believe this acquisition trend is likely to persist and even accelerate, due to:
- Talent scarcity and delivery scale pressures: Demand for certified ServiceNow talent continues to outstrip supply, especially in high-growth areas like IT Operations Management (ITOM), HRSD, CSM, and GenAI-led workflows. Acquiring specialized firms is the fastest route for larger providers to close talent gaps and expand delivery capacity.
- Need for geographic expansion: Service providers are increasingly using M&A to expand into key growth regions, especially in Europe, Middle East and Africa (EMEA) and Asia-Pacific (APAC). Acquiring local players with established delivery centers and regional relationships helps fast-track global footprint expansion.
- Valuations are attractive in the current macroeconomy: Many specialists are facing funding pressure, making them more open to acquisition at lower valuations. This creates a perfect storm for providers looking to scale rapidly. Acquisitions now can secure critical capabilities and talent ahead of the competition.
At Everest Group, we closely track the evolving ServiceNow specialist ecosystem.
As shown in the above exhibit, out of 22 ServiceNow specialist providers tracked by Everest Group between 2021 and 2025, 10 providers have been acquired by other firms, indicating a clear trend of consolidation in the ecosystem
What is your inorganic strategy?
This is a defining moment. Acquisitions are emerging as a key lever for growth.
So, ask yourself:
• What is your inorganic growth strategy?
• Which specialist providers align with your strategic goals and could be viable acquisition targets?
We have published the latest edition of the Enterprise Guidebook for ServiceNow Services: Navigating the Specialist Provider Ecosystem capturing key factors driving ServiceNow adoption, the challenges inhibiting its expansion, and the considerations enterprises prioritize when selecting a ServiceNow services provider. The report also outlines the key attributes of ServiceNow specialist providers and highlights 15 providers with a dedicated focus on ServiceNow services.
If you have any further questions or want to discuss your ServiceNow services strategy, please contact AS Yamohiadeen ([email protected]), Sangamesh Kadagad ([email protected]), Aditya Gullapalli ([email protected]), and Srinidhi Arunachalam ([email protected]).
If you found this blog interesting, check out our ServiceNow’s $2.85 Billion Moveworks Acquisition: Evaluating The Strategic Impact | Blog – Everest Group, which delves deeper into another topic regarding ServiceNow.
