Attention sports businesses, see service providers as more than just sponsors

The IT and business services industry has a long relationship with the sports sector, but it is historically centered around sponsorship and brand deals. Now, every sector is realizing that digital is not optional—and sports is no different. It’s a mostly untapped market, and every sports organization should look to technology to drive long-term value, optimize performance, enhance fan engagement, and unlock new revenue streams. This requires a shift in mindset, as sports executives must look beyond sponsorship dollars and understand that leading IT and business services providers can provide genuine innovation—the reality is they still don’t.

Sports leaders must see the true value of IT and business service providers

Sports organizations looking to IT and business services firms as potential sponsorship partners isn’t enough anymore. The harsh reality is that the sports sector has mostly ignored digital transformation, while every other industry has embraced it. It has only survived because of the emotional drivers in sports. But business is business, and it can only resist change for so long.

The sports sponsorship market is projected to surpass $161 billion globally by 2032, with a strong 8.7% year-over-year growth rate. That might sound exciting, but a strong influx of short-term sponsorship capital will do little to ensure the long-term viability of your business without a solid digital footprint. What that actually means is leading sports organizations have both the capital and the relationships to invest in exactly that—nurturing partnerships with leading service providers to develop the IT infrastructure needed to stay relevant in the increasingly digital world. Savvy organizations are already doing it—the NFL and AWS are using AI/ML to provide real-time statistics, while Verizon’s 5G infrastructure powers in-stadium connectivity, AR/VR experience, and improved fan experience.

If you continue to favor sponsorship dollars over innovation, your organization will become increasingly stagnant in this fast-moving sector.

Leading service providers are already arming themselves with the tools needed to transform your organization

HFS was fast to recognize the rapid rise of sports technology, as pointed out in our recent research. In response, we spoke to our network of leading service providers to understand their views, growth opportunities, and challenges they face in the space. What we learned is pretty straightforward: service providers are busy arming themselves with the latest tools and capabilities to help sports organizations embrace digital transformation, but they struggle to push the conversation beyond sponsorship. The tools are literally waiting to be used; you just have to ask!

Enhanced player performance, improved fan engagement, and better operational efficiency are just some benefits you can expect when partnering with a service provider, ultimately delivering improved on-field and off-field performance. Here we outline three examples of service providers’ work in the sports sector:

• Sportian, the sports division of Globant, has partnered with major football clubs and leagues to build digital fan platforms and immersive content experiences. Its work with FIFA created a multi-channel platform that engaged millions during the World Cup, demonstrating how technology can amplify global fan participation beyond traditional broadcasting.
• Infosys is helping tennis organizations such as the ATP and Roland-Garros reimagine the fan journey through data analytics and AI-powered match insights. Its AI-based tools reshape how fans interact with matches in real time, while its digital platforms support new revenue streams from personalized content and dynamic merchandising.
• Cognizant’s work with the PGA Tour was focused on transforming the fan and player experience through advanced data management and real-time insights, enhancing tournament operations, and enabling new digital monetization channels. The engagement showed that digital infrastructure can be a revenue driver, not just a cost center.

Real Madrid’s heavy focus on digital transformation has already yielded results

Real Madrid is one of the oldest and most established brands in global sports, with over 600 million fans worldwide—but they knew they had to act. While the organization has experienced much on-field success, it had significant scope to improve its engagement with its fans—resulting in a partnership with Softtek.

HFS analysts recently connected with leaders from both Real Madrid and Softtek to learn about their journey.

Softtek played a crucial role—not as a passive sponsor but as a technology enabler. It helped Real Madrid unify fan interactions across ticketing, ecommerce, loyalty programs, and content delivery, transforming engagement into monetization through subscriptions, hyper-personalized experiences, and streamlined digital operations.

Softtek helped drive measurable results across multiple platforms. Real Madrid achieved higher engagement through its new mobile app compared to the previous version, along with increased OTT subscriptions for Madridistas, the club’s program providing full streaming access on RM Play. Additionally, the club saw growth in ecommerce sales and average basket value. Real Madrid is continuing to set the pace in digital transformation, propelled by its urgency and commitment to reimagining the fan experience. Innovation and evolving fan expectations are sparking new monetization strategies that others in the industry will want to emulate.

The Bottom Line: Sponsorship remains critical for your organization—but use it as a catalyst for digital transformation.

Sponsorships aren’t dead, but their value should evolve. Sports organizations must shift their mindset to lean on IT and business services providers for what they’re actually good at—digital transformation. The building blocks are there: you have sponsorship capital, strong relationships with service providers, and an organization ripe for disruption. Real Madrid is living proof that your peers are already doing it today—why aren’t you?