IT Services - Denmark

Denmark

Denmark is expected to see a significant growth in the IT Services market, with projected revenue reaching US$12.16bn by 2024.
Within this market, IT Outsourcing is anticipated to dominate, with a projected market volume of US$4.79bn in 2024.
This indicates a strong demand for outsourced IT services in Denmark.
Furthermore, the IT Services market is expected to experience a steady annual growth rate of 5.26% between 2024 and 2029.
This growth will result in a market volume of US$15.71bn by 2029, further establishing the significance of the IT Services market sector in Denmark's economy.
In terms of expenditure, the average Spend per Employee in the IT Services market is projected to reach US$3.74k in 2024.
This figure highlights the financial investment made by companies in Denmark towards IT Services market per employee.
When comparing global revenue, it is noteworthy that United States is expected to generate the highest revenue in the IT Services market, with a projected amount of US$522.00bn in 2024.
This demonstrates the global dominance of the US in this sector.
Considering these projections and the growing importance of technology in various industries, it is evident that the IT Services market in Denmark holds significant potential for growth and development.
Denmark's IT Services market is thriving, with a strong emphasis on innovation and a highly skilled workforce.

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

Denmark, known for its high-tech industries, has a well-established IT services market that continues to grow at a steady pace.

Customer preferences: Danish companies prioritize the use of technology to streamline business processes and improve efficiency. They are open to adopting new technologies and services that can help them stay competitive in the global market. This has led to a high demand for IT services such as cloud computing, cybersecurity, and software development.

Trends in the market: One of the major trends in the Danish IT services market is the shift towards cloud-based solutions. With the increasing need for remote work and data storage, more companies are opting for cloud services to ensure secure data management and accessibility. Additionally, there is a growing demand for cybersecurity services to protect against cyber threats.Another trend is the rise of digital transformation in various industries. Companies are investing in digital technologies to improve customer experience, increase operational efficiency, and reduce costs. This has led to a high demand for IT consulting services that can help companies identify areas for digital transformation and implement the necessary changes.

Local special circumstances: Denmark has a highly skilled workforce, with a focus on innovation and collaboration. This has led to the development of a strong startup ecosystem, with many companies specializing in IT services. Additionally, the Danish government has implemented policies to support the growth of the IT industry, such as tax incentives for research and development.

Underlying macroeconomic factors: Denmark has a stable economy with a high standard of living. The country has a strong focus on sustainability and innovation, which has led to the development of a thriving tech industry. Additionally, Denmark has a strong digital infrastructure, with high internet penetration and a supportive regulatory environment for technology companies. These factors have contributed to the growth of the IT services market in Denmark.

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.