IT Services - ASEAN

ASEAN

The projected revenue in the IT Services market for ASEAN is estimated to reach US$30.66bn by 2024.
It is worth noting that IT Outsourcing dominates this market segment, with a projected market volume of US$11.34bn by 2024.
Furthermore, the revenue is expected to demonstrate an annual growth rate (CAGR 2024-2029) of 7.30%, resulting in a market volume of US$43.60bn by 2029.
In terms of the average Spend per Employee within the IT Services market, it is projected to reach US$88.41 by 2024.
When compared globally, United States is anticipated to generate the highest revenue, with an estimated amount of US$522.00bn in 2024.
This highlights the significance of the IT Services market, not only for ASEAN but also on a global scale.
In Singapore, the IT services market is booming with a focus on digital transformation and cloud computing solutions.

Key regions: United States, China, India, Japan, Germany

Definition:
The IT Services market encompasses a wide range of services used by organizations to create, manage, and deliver information, and it includes services that provide assistance with various other business functions. The primary goal of IT services is to ensure that information technology infrastructure, applications, and systems are effectively implemented, operated, and optimized to support an organization's business objectives and requirements. The specific range of services offered may vary depending on the service provider and the client's requirements.

Structure:

IT Services contains four distinct markets that are based on different services:

IT Consulting & Implementation covers advisory services that help businesses evaluate their technology strategies and align them with their business strategies or internal processes.
Business Process Outsourcing (BPO) refers to the transfer of entire business processes or individual activities from a company to a third party and is often IT based. BPO covers a wide variety of business processes, usually either in the back office (e.g., human resources) or in the front office (e.g., customer service in call centers).
IT Outsourcing refers to the external contracting of all IT-related services instead of relying on company-owned resources. In an IT context, these activities include IT administration, IT application, and web hosting services.
The Other IT Services market covers revenues for areas that are not specifically mentioned in the other markets, such as system integration, software installation and support, and IT education and training.

Additional Information:

The IT Services market comprises revenues, revenue change, average spend per employee, and a list of the key players in the market and their consolidated revenues. Market values represent revenues that are generated by primary vendors either directly or through distribution channels at the manufacturer price level (excluding VAT). Reported market revenues include spending by enterprises (B2B) and governments (B2G). Detailed definitions of each market can be found on the respective page where the market data is displayed. Key players in the market include IBM, Cognizant, Hewlett Packard Enterprise, and TCS.

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Region

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Analyst Opinion

The IT Services market in ASEAN has been experiencing significant growth in recent years, driven by a number of factors such as increasing digitalization and the adoption of new technologies.

Customer preferences: Customers in ASEAN are increasingly looking for IT services that can help them improve their business operations and drive growth. This has led to a growing demand for services such as cloud computing, big data analytics, and cybersecurity. In addition, there is also a growing demand for IT outsourcing services as companies look to reduce costs and improve efficiency.

Trends in the market: One of the key trends in the IT Services market in ASEAN is the growth of the cloud computing market. Cloud computing is becoming increasingly popular among businesses in the region as it offers a number of benefits such as scalability, flexibility, and cost-effectiveness. In addition, there is also a growing demand for big data analytics services as companies look to gain insights from the large amounts of data they are generating.Another trend in the market is the increasing importance of cybersecurity. With the growing threat of cyber-attacks, companies in ASEAN are investing more in cybersecurity services to protect their data and systems. This has led to a growing demand for services such as threat intelligence, vulnerability assessment, and incident response.

Local special circumstances: One of the unique characteristics of the IT Services market in ASEAN is the diversity of the region. Each country in ASEAN has its own unique market conditions and customer preferences, which means that IT services providers need to tailor their offerings to the specific needs of each market.For example, in Indonesia, there is a growing demand for e-commerce and mobile payment solutions, while in Singapore, there is a strong focus on financial technology and digital banking services. In addition, countries such as Vietnam and the Philippines are seeing significant growth in their outsourcing industries, which is driving demand for IT outsourcing services.

Underlying macroeconomic factors: The growth of the IT Services market in ASEAN is being driven by a number of underlying macroeconomic factors. One of the key factors is the increasing digitalization of the region, which is creating new opportunities for IT services providers. In addition, the region's young and tech-savvy population is driving demand for new technologies and services.Another factor is the growing importance of ASEAN as a global economic powerhouse. With a combined population of over 650 million and a rapidly growing middle class, ASEAN is becoming an increasingly important market for businesses around the world. This is driving demand for IT services that can help companies tap into this growing market and drive growth.

Methodology

Data coverage:

The data encompasses B2G, B2B, and B2C enterprises. Figures are based on enterprises' technology spending on products, consulting, and outsourcing services.

Modeling approach / Market size:

Market sizes are determined through a combined top-down and bottom-up approach, building on a specific rationale for each market segment. As a basis for evaluating markets, we use annual financial reports of key players in the industry, Statista's primary research and surveys, and IT associations. In addition, we use relevant key market indicators and data from country-specific associations, such as GDP, internet users, and telecommunication. This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, the exponential trend smoothing method is used based on the market data characteristics. The main drivers are the GDP and its sector composition, internet penetration, the level of digitization, and the attitude toward IT security.

Additional notes:

The data is modeled using current exchange rates. The market is updated twice a year in case market dynamics change. The impact of the COVID-19 pandemic and the Russia-Ukraine war is considered at a country-specific level.