IT Services - Cambodia

Cambodia

Revenue in the IT Services market is projected to reach US$230.20m in 2024.
IT Outsourcing dominates the market with a projected market volume of US$81.29m in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 8.80%, resulting in a market volume of US$350.90m by 2029.
The average Spend per Employee in the IT Services market is projected to reach US$24.82 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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Market

Region

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Analyst Opinion

Cambodia, a Southeast Asian country known for its rich cultural heritage and natural beauty, is also a growing player in the IT Services market.

Customer preferences: As in many other countries, Cambodian businesses are increasingly adopting digital technologies to improve their operations. This has led to a growing demand for IT services such as software development, cloud computing, and cybersecurity. Additionally, the country's young and tech-savvy population is driving the demand for mobile and internet-based services.

Trends in the market: One of the key trends in the IT Services market in Cambodia is the growth of the outsourcing industry. Many international companies are choosing to outsource their IT services to Cambodian firms due to the country's low labor costs and favorable business environment. This trend has led to the emergence of a number of local IT service providers that are now competing with global players.Another trend in the Cambodian IT Services market is the rise of e-commerce. With the increasing popularity of online shopping, many businesses are looking to set up their own e-commerce platforms or partner with existing ones. This has created a demand for IT services such as website development, online payment systems, and logistics management.

Local special circumstances: Cambodia's relatively low labor costs and favorable business environment have made it an attractive destination for foreign investors. The country's government has also been actively promoting the development of the IT sector through initiatives such as the Digital Cambodia 2025 program. This program aims to transform Cambodia into a digital economy by 2025 by promoting the development of digital infrastructure and human resources.

Underlying macroeconomic factors: Cambodia's economy has been growing at a steady rate in recent years, driven by strong performance in the garment and tourism sectors. This has created a favorable business environment for the IT Services market, with many businesses looking to invest in digital technologies to improve their competitiveness. Additionally, Cambodia's young and tech-savvy population provides a strong foundation for the growth of the IT Services market in the country.

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.