IT Services - Central Asia

Central Asia

The IT Services market in Central Asia is expected to witness significant growth, with projected revenue reaching US$3.51bn by 2024.
Among the various segments within this market, Business Process Outsourcing is set to dominate, with a projected market volume of US$1.19bn in the same year.
This indicates a strong demand for outsourcing services in the region.
Furthermore, the IT Services market is expected to exhibit a steady growth rate, with a compound annual growth rate (CAGR) of 9.79% between 2024 and 2029.
This growth trajectory is anticipated to result in a market volume of US$5.60bn by 2029.
Such growth prospects highlight the increasing importance of IT Services market in Central Asia's economy.
Moreover, the average Spend per Employee in the IT Services market is projected to reach US$109.20 in 2024.
This metric provides insights into the level of investment made by companies in the sector to acquire IT services, indicating their recognition of the value and benefits brought by such services.
In terms of global comparison, United States is expected to generate the highest revenue in the IT Services market, reaching US$522.00bn in 2024.
This underscores United States' position as a global leader in the IT industry, with significant market share and robust demand for IT services.
Overall, the IT Services market in Central Asia is poised for substantial growth, driven by the dominance of Business Process Outsourcing , a steady growth rate, and increasing investment in IT services by companies.
This presents significant opportunities for businesses operating in the region and reinforces the importance of the IT sector in Central Asia's economic landscape.
In Central Asia, Kazakhstan is experiencing a surge in demand for IT services due to its strategic location and growing tech industry.

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

Region comparison

Currency

Analyst Opinion

Central Asia, a region known for its rich cultural heritage and diverse geography, has been experiencing a steady growth in the IT Services market in recent years.

Customer preferences: The customers in Central Asia are increasingly looking for IT services that are cost-effective and provide high-quality solutions. They prefer customized services that cater to their specific business needs and are delivered in a timely manner. The demand for cloud computing, big data analytics, and cybersecurity services is on the rise.

Trends in the market: Kazakhstan, the largest country in Central Asia, has been witnessing a surge in demand for IT services due to its government's focus on digitization and modernization. The country has been investing heavily in infrastructure development and has set up special economic zones to promote IT services. Uzbekistan, another major country in the region, has also been experiencing a growth in the IT services market due to the government's efforts to promote the sector and attract foreign investment.

Local special circumstances: The IT services market in Central Asia is still in its nascent stage and faces challenges such as a shortage of skilled professionals and lack of awareness among the local businesses about the benefits of IT services. However, the governments in the region are taking steps to address these challenges and promote the sector.

Underlying macroeconomic factors: The growth in the IT services market in Central Asia can be attributed to various macroeconomic factors such as the region's strategic location, abundant natural resources, and young and tech-savvy population. The region's proximity to major markets such as China, Russia, and Europe makes it an attractive destination for IT services outsourcing. The availability of natural resources such as oil, gas, and minerals has led to the growth of various industries in the region, which in turn has created a demand for IT services. Additionally, the region's young and tech-savvy population has been driving the demand for IT services, especially in areas such as e-commerce and mobile applications.

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.