Computer services are growing rapidly in mature industrial economics. Turnover is expanding quickly, new firm formation rates are high and employment growth is continuing to expand. In spatial terms, computer services in the UK remain concentrated in the attractive areas of southern England. Key trends in the computer service industry are discussed, including new entrants, the role of large corporations, internalization and externalization processes, the importance of hardware companies and prospective changes in location. Finally a number of research issues in industrial location are raised.