IT Services - Bhutan

Bhutan

Revenue in the IT Services market is projected to reach US$23.28m in 2024.
IT Outsourcing dominates the market with a projected market volume of US$8.05m in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 7.96%, resulting in a market volume of US$34.14m by 2029.
The average Spend per Employee in the IT Services market is projected to reach US$59.39 in 2024.
In global comparison, most revenue will be generated in the United States (US$522.00bn in 2024).

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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Analyst Opinion

The IT Services market in Bhutan has been steadily developing in recent years, driven by a combination of customer preferences, local special circumstances, and underlying macroeconomic factors.

Customer preferences: Bhutanese customers are increasingly seeking IT services that can help them streamline their operations, improve their productivity, and enhance their overall competitiveness. This has led to a growing demand for a wide range of IT services, including software development, system integration, cloud computing, and cybersecurity.

Trends in the market: One of the key trends in the IT Services market in Bhutan is the growing adoption of cloud computing. Many businesses in the country are now turning to cloud-based solutions to store and manage their data, as well as to access software and applications. This trend is being driven by the many benefits of cloud computing, including cost savings, scalability, and flexibility.Another trend in the market is the increasing focus on cybersecurity. With the rise of cyber threats and attacks, Bhutanese businesses are becoming more aware of the need to protect their networks, systems, and data. As a result, there is a growing demand for cybersecurity services, such as vulnerability assessments, threat detection, and incident response.

Local special circumstances: Bhutan is a small, landlocked country with a population of just over 750,000 people. Its economy is heavily reliant on agriculture and tourism, but the government has been working to diversify the economy in recent years. One of the key areas of focus has been the development of the IT sector, which is seen as a potential driver of economic growth.To support the growth of the IT Services market, the government has implemented a number of initiatives, including the establishment of a dedicated Ministry of Information and Communications, the development of a national broadband network, and the promotion of digital literacy.

Underlying macroeconomic factors: Bhutan's economy has been growing at a steady pace in recent years, driven by a combination of government investment, foreign aid, and private sector development. This has created a favorable environment for the IT Services market, as businesses are increasingly willing to invest in new technologies and services.In addition, Bhutan's strategic location between India and China has made it an attractive destination for outsourcing and offshoring. Many businesses in the region are now turning to Bhutanese IT service providers for their expertise and cost-effectiveness.Overall, the IT Services market in Bhutan is poised for continued growth in the coming years, driven by a combination of customer demand, government support, and favorable macroeconomic conditions.

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.