Uptime Report Research · State Atlas

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

145,813computer services establishments, 2023 (NAICS 5415)
43.3establishments per 100,000 U.S. residents
$122,296average annual pay per employee
-7.2%change in computer facilities management firms (NAICS 541513), 2022 to 2023

Computer services establishments per 100,000 residents, 2023AK26ME28VT40NH47WA47ID33MT35ND23MN48IL48WI29MI30NY39RI33MA47OR34NV42WY82SD28IA22IN26OH29PA34NJ68CT35CA53UT47CO72NE33MO27KY20WV14VA108MD84DE136AZ35NM22KS33AR18TN21NC37SC24DC122OK22LA18MS13AL21GA51HI28TX48FL45under 2525 to 3535 to 5050 to 8080 and over

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)

  1. California: 20,696
  2. Texas: 14,905
  3. Florida: 10,395
  4. Virginia: 9,439
  5. New York: 7,670

Highest average pay

  1. California: $167,821
  2. Massachusetts: $157,013
  3. Delaware: $140,102
  4. New York: $132,834
  5. 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/

Download the data. it-services-firms-by-state-2023.csv (CSV). Licensed under CC BY 4.0: free to reuse with attribution to The Uptime Report.

References

  1. U.S. Census Bureau, County Business Patterns (2022 and 2023 state files). Accessed October 2026.
  2. U.S. Census Bureau, Population Estimates Program, Vintage 2024. Accessed October 2026.
  3. U.S. Census Bureau, North American Industry Classification System. Accessed October 2026.

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