IT Services - D-A-CH

D-A-CH

In 2024, the projected revenue in the IT Services market in the D-A-CH region is expected to reach a staggering US$97.14bn.
Dominating this market segment is IT Outsourcing, with a projected market volume of US$40.46bn in 2024.
Looking ahead, the revenue is expected to exhibit a steady annual growth rate (CAGR 2024-2029) of 5.39%, resulting in a market volume of US$126.30bn by 2029.
Furthermore, the average Spend per Employee in the IT Services market is projected to reach US$1.75k in 2024.
When compared globally, it is worth noting that United States is forecasted to generate the highest revenue, with an impressive US$522.00bn in 2024.
In Germany, the IT Services market is experiencing a surge in demand due to the increasing adoption of digital transformation strategies by businesses.

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.

For more information on the data displayed, use the info button right next to the boxes.

Market

Region

Region comparison

Currency

Analyst Opinion

The IT Services market in D-A-CH, which comprises Germany, Austria, and Switzerland, is a thriving industry that has been experiencing steady growth in recent years.

Customer preferences: Customers in the D-A-CH region have a strong preference for IT services that are innovative, reliable, and cost-effective. They also value IT services that are tailored to their specific needs and can help them improve their business operations. Additionally, customers in this region are increasingly interested in IT services that can help them manage their data more effectively and securely.

Trends in the market: In Germany, the IT Services market is being driven by the growing demand for cloud-based services, cybersecurity solutions, and digital transformation services. Cloud computing has become increasingly popular among German businesses, as it offers a cost-effective and flexible way to store and manage data. Cybersecurity is also a growing concern, as businesses seek to protect their data from cyber threats. Digital transformation services are also in high demand, as businesses look to modernize their IT infrastructure and processes.In Austria, the IT Services market is seeing growth in areas such as IT consulting, software development, and outsourcing. Austrian businesses are increasingly seeking IT consulting services to help them improve their IT strategies and processes. Software development is also a growing area, as businesses look to develop custom software solutions to meet their specific needs. Outsourcing is also becoming more popular, as businesses seek to reduce costs and improve efficiency.In Switzerland, the IT Services market is being driven by the growing demand for IT infrastructure services, such as data center management and cloud computing. Swiss businesses are increasingly looking to outsource their IT infrastructure needs, as it offers a cost-effective and efficient way to manage their IT operations. Cloud computing is also becoming more popular, as it offers a flexible and scalable way to store and manage data.

Local special circumstances: One of the unique characteristics of the IT Services market in the D-A-CH region is the strong focus on data privacy and security. This is particularly true in Germany, where businesses are required to comply with strict data protection regulations. As a result, IT services providers in this region must be able to offer robust data security solutions that can help businesses protect their sensitive data.

Underlying macroeconomic factors: The IT Services market in D-A-CH is being driven by a number of macroeconomic factors, including the growing demand for digital transformation, the increasing importance of data security, and the need to reduce costs and improve efficiency. Additionally, the strong economy in this region has led to increased investment in IT services, as businesses seek to gain a competitive edge and improve their operations. Overall, the IT Services market in D-A-CH is expected to continue to grow in the coming years, driven by these underlying macroeconomic factors and the evolving needs of businesses in the region.

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.