IT Services Firms by State: A Census Atlas of the Managed IT Industry
The United States had 145,813 computer services establishments in 2023, employing 2,050,626 people at an average annual pay of $122,296, according to Census Bureau County Business Patterns. The firms are heavily concentrated: Virginia, Maryland, and the District of Columbia lead on density, while the category closest to managed service providers shrank 7.2% in a single year.
Original analysis of U.S. Census Bureau data · Last updated October 2026
Source: U.S. Census Bureau, County Business Patterns 2023; population from Census Vintage 2024 estimates (July 1, 2023). Analysis: The Uptime Report.
Where are IT services firms most concentrated?
Measured per resident, the densest IT services markets are Delaware (135.8 establishments per 100,000 residents), District of Columbia (122.1), and Virginia (108.1), against a national figure of 43.3. The cluster around Washington, D.C. reflects federal contracting, which supports a large base of systems integrators and managed IT providers. Delaware’s high ratio comes from a small population; it has 1,407 establishments in total. At the other end, Mississippi has 12.6 establishments per 100,000 residents, about one tenth of the leading state’s density.
Most establishments (total)
- California: 20,696
- Texas: 14,905
- Florida: 10,395
- Virginia: 9,439
- New York: 7,670
Highest average pay
- California: $167,821
- Massachusetts: $157,013
- Delaware: $140,102
- New York: $132,834
- Washington: $131,659
How much do IT services employers pay by state?
Average annual pay in computer services ranges from $167,821 in California to $68,177 in Mississippi, a ratio of 2.5 to 1. The national average is $122,296. These figures are total annual payroll divided by employees, so they include all roles from technicians to executives and are not comparable to occupation-specific wage data.
Is the MSP segment consolidating?
The Census code closest to managed service providers, NAICS 541513 (computer facilities management services), fell from 6,872 establishments in 2022 to 6,374 in 2023, a decline of 7.2%. Over the same period, NAICS 541519 (other computer related services) grew 10.7% and NAICS 541512 (computer systems design) changed -0.3%. The broad computer services sector was nearly flat at +0.4%.
The decline was broad: 43 of 51 jurisdictions recorded fewer 541513 establishments. The largest losses were in California (-92), Florida (-72), Virginia (-40), Maryland (-40).
One reading is consolidation, as acquisitions absorb independent providers. The data cannot confirm that on its own: establishment counts also move when businesses reclassify between codes, and some of the 541519 growth may be the same firms reporting differently. Treat this as a signal worth watching, not proof of consolidation.
Full state table
| # | State | Establishments | Per 100k residents | Employees | Avg annual pay | Change 2022-23 | NAICS 541513 (chg) |
|---|---|---|---|---|---|---|---|
| 1 | Delaware | 1,407 | 135.8 | 11,143 | $140,102 | +14.8% | 23 (-1) |
| 2 | District of Columbia | 839 | 122.1 | 15,625 | $117,080 | -4.9% | 30 (-9) |
| 3 | Virginia | 9,439 | 108.1 | 204,399 | $118,876 | +0.9% | 355 (-40) |
| 4 | Maryland | 5,227 | 84.1 | 86,551 | $115,750 | -0.6% | 236 (-40) |
| 5 | Wyoming | 477 | 81.5 | 1,554 | $86,283 | +12.5% | 17 (-3) |
| 6 | Colorado | 4,264 | 72.3 | 55,523 | $120,866 | -1.2% | 145 (-27) |
| 7 | New Jersey | 6,369 | 67.9 | 85,654 | $112,797 | -0.7% | 269 (-26) |
| 8 | California | 20,696 | 52.8 | 299,029 | $167,821 | -0.8% | 594 (-92) |
| 9 | Georgia | 5,655 | 51.1 | 92,751 | $111,930 | +2.6% | 248 (+1) |
| 10 | Texas | 14,905 | 48.5 | 192,176 | $120,677 | +6.2% | 499 (-25) |
| 11 | Minnesota | 2,767 | 48.1 | 29,258 | $110,784 | -3.5% | 124 (-12) |
| 12 | Illinois | 6,023 | 47.6 | 80,067 | $124,318 | -1.9% | 354 (-3) |
| 13 | New Hampshire | 658 | 46.9 | 7,686 | $131,316 | -1.6% | 34 (-2) |
| 14 | Utah | 1,614 | 46.9 | 22,942 | $98,991 | -1.6% | 52 (-16) |
| 15 | Washington | 3,684 | 46.9 | 53,995 | $131,659 | -1.8% | 119 (-4) |
| 16 | Massachusetts | 3,291 | 46.6 | 63,043 | $157,013 | -2.7% | 134 (-5) |
| 17 | Florida | 10,395 | 45.4 | 96,162 | $103,965 | -0.6% | 461 (-72) |
| 18 | Nevada | 1,360 | 42.3 | 8,438 | $113,472 | +1.1% | 58 (-1) |
| 19 | Vermont | 263 | 40.5 | 1,946 | $104,709 | -3.7% | 14 (-5) |
| 20 | New York | 7,670 | 38.9 | 90,348 | $132,834 | -1.8% | 300 (-24) |
| 21 | North Carolina | 4,038 | 37.1 | 49,873 | $114,104 | +5.4% | 156 (-12) |
| 22 | Connecticut | 1,278 | 35.1 | 20,869 | $115,750 | +2.3% | 53 (-8) |
| 23 | Arizona | 2,608 | 34.9 | 34,181 | $109,374 | +2.3% | 116 (-17) |
| 24 | Montana | 394 | 34.8 | 2,842 | $101,437 | -3.4% | 22 (-3) |
| 25 | Pennsylvania | 4,404 | 33.8 | 68,334 | $105,825 | +0.2% | 222 (-5) |
| 26 | Oregon | 1,425 | 33.5 | 11,651 | $112,554 | -2.9% | 67 (-1) |
| 27 | Rhode Island | 368 | 33.4 | 6,760 | $118,383 | -5.4% | 21 (-4) |
| 28 | Idaho | 648 | 32.9 | 4,097 | $86,254 | +0.8% | 34 (-2) |
| 29 | Kansas | 972 | 32.9 | 12,311 | $92,327 | +2.0% | 73 (+2) |
| 30 | Nebraska | 649 | 32.6 | 9,689 | $79,638 | +2.5% | 26 (-3) |
| 31 | Michigan | 3,049 | 30.2 | 45,856 | $102,798 | +0.4% | 243 (+11) |
| 32 | Ohio | 3,456 | 29.2 | 50,324 | $104,630 | +0.7% | 175 (-18) |
| 33 | Wisconsin | 1,719 | 29.0 | 22,141 | $103,520 | -0.2% | 159 (+21) |
| 34 | Maine | 394 | 28.1 | 4,502 | $107,869 | -3.4% | 20 (-3) |
| 35 | Hawaii | 403 | 28.0 | 2,937 | $98,808 | -1.9% | 20 (-9) |
| 36 | South Dakota | 256 | 27.9 | 1,998 | $89,390 | +0.0% | 12 (-2) |
| 37 | Missouri | 1,670 | 26.9 | 45,435 | $102,763 | -1.2% | 123 (-1) |
| 38 | Alaska | 194 | 26.3 | 3,717 | $93,768 | -9.8% | 24 (-1) |
| 39 | Indiana | 1,785 | 25.9 | 24,018 | $82,962 | +1.9% | 171 (+23) |
| 40 | South Carolina | 1,322 | 24.5 | 16,888 | $101,001 | -1.2% | 72 (-9) |
| 41 | North Dakota | 185 | 23.4 | 2,447 | $75,812 | +5.1% | 13 (+0) |
| 42 | Oklahoma | 901 | 22.2 | 11,020 | $87,595 | -0.7% | 66 (+1) |
| 43 | New Mexico | 466 | 22.0 | 4,146 | $100,463 | -2.5% | 58 (+9) |
| 44 | Iowa | 705 | 21.9 | 13,761 | $89,979 | -3.6% | 26 (-8) |
| 45 | Tennessee | 1,500 | 21.0 | 21,457 | $96,568 | +2.3% | 84 (-1) |
| 46 | Alabama | 1,068 | 20.9 | 23,766 | $99,857 | -2.6% | 91 (-1) |
| 47 | Kentucky | 931 | 20.5 | 14,720 | $91,337 | +1.7% | 32 (-13) |
| 48 | Arkansas | 566 | 18.4 | 5,588 | $92,804 | +6.4% | 33 (-7) |
| 49 | Louisiana | 837 | 18.2 | 9,526 | $81,076 | -2.2% | 57 (-8) |
| 50 | West Virginia | 249 | 14.1 | 3,549 | $94,835 | +3.8% | 16 (-6) |
| 51 | Mississippi | 370 | 12.6 | 3,933 | $68,177 | -4.6% | 23 (-17) |
All columns NAICS 5415 (computer systems design and related services) unless noted. Ranked by establishments per 100,000 residents.
Frequently asked questions
How many IT services companies are in the United States?
145,813 computer services establishments (NAICS 5415) in 2023, per Census County Business Patterns. An establishment is a single physical location, so multi-site firms count more than once.
Which state has the most IT services firms?
California, with 20,696 establishments, followed by Texas (14,905).
Which state has the highest density of IT firms?
Delaware, at 135.8 per 100,000 residents; among large states, Virginia leads at 108.1.
How many managed service providers are there?
There is no Census code for MSPs alone. The closest, NAICS 541513, counted 6,374 establishments in 2023, but many MSPs report under 541512 or 541519.
What is the average salary at IT services firms?
$122,296 per employee in 2023 (payroll divided by employment), from $68,177 in Mississippi to $167,821 in California.
Are MSPs declining?
NAICS 541513 establishments fell 7.2% from 2022 to 2023. This may reflect consolidation, reclassification, or both.
How many people work in IT services?
2,050,626 employees in NAICS 5415 establishments in March 2023.
Where is this data from?
U.S. Census Bureau County Business Patterns, the official count of business establishments, employment, and payroll by industry.
Methodology
Sources. U.S. Census Bureau County Business Patterns, state files for 2023 (cbp23st) and 2022 (cbp22st), all legal forms of organization. Population: Census Vintage 2024 state estimates, July 1, 2023 values.
Industry codes. NAICS 5415 covers computer systems design and related services; we break out 541512 (systems design), 541513 (facilities management, closest to MSPs), and 541519 (other computer related services).
Derived metrics. Density = establishments / population x 100,000. Average pay = annual payroll / mid-March employment. Change = (2023 – 2022) / 2022.
Limitations. CBP excludes most self-employed operators without payroll, so one-person IT shops are undercounted. Establishments are locations, not companies. Firms choose their own NAICS code, so category boundaries are imperfect. 2023 is the latest CBP release as of October 2026.
Not advice. This is published statistical data and derived analysis.
Cite as:The Uptime Report. "IT Services Firms by State: A Census Atlas of the Managed IT Industry." October 2026. https://theuptimereport.com/it-services-firms-by-state-2026/
References
- U.S. Census Bureau, County Business Patterns (2022 and 2023 state files). Accessed October 2026.
- U.S. Census Bureau, Population Estimates Program, Vintage 2024. Accessed October 2026.
- U.S. Census Bureau, North American Industry Classification System. Accessed October 2026.
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