IT Services - Estonia

Estonia

In 2025, the projected revenue for the IT Services market in Estonia is expected to reach US$283.90m.
It is worth noting that IT Outsourcing dominates this market, with a projected market volume of US$112.70m in the same year.
Looking ahead, the revenue is anticipated to grow at an annual growth rate of 6.18% (CAGR 2025-2029), resulting in a market volume of US$360.80m by 2029.
Furthermore, the average Spend per Employee in the IT Services market is projected to reach US$375.10 in 2025.
It is interesting to observe that in global comparison, United States is expected to generate the highest revenue, amounting to US$550.30bn in 2025.
Estonia, known for its advanced digital infrastructure, continues to attract global IT service providers due to its highly skilled workforce and favorable business environment.

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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Currency

Analyst Opinion

Estonia, a small country in Northern Europe, has been experiencing a steady growth in its IT Services market in recent years.

Customer preferences: Estonia's IT Services market has been driven by the increasing demand for digital transformation and automation solutions by businesses. The country has a high level of digitalization, and its citizens are tech-savvy, which has led to a growing demand for IT services. Additionally, the rise of cloud computing and data analytics has also contributed to the growth of the IT Services market in Estonia.

Trends in the market: One of the key trends in the IT Services market in Estonia is the shift towards more specialized and niche services. As businesses become more digitalized, they require more specialized IT services to meet their specific needs. This has led to the emergence of niche IT service providers that cater to specific industries or business types. Another trend is the increasing adoption of artificial intelligence (AI) and machine learning (ML) in IT services. The use of AI and ML is becoming more prevalent in areas such as data analytics and cybersecurity.

Local special circumstances: Estonia has a highly skilled workforce, which has been a major factor in the growth of its IT Services market. The country has a strong education system that emphasizes technology and engineering, which has helped to produce a large pool of talented IT professionals. Additionally, Estonia has a favorable business environment that encourages entrepreneurship and innovation. This has led to the emergence of many startups and small businesses that specialize in IT services.

Underlying macroeconomic factors: Estonia's IT Services market has been supported by the country's strong economic growth in recent years. The country has a stable political environment and a business-friendly regulatory framework, which has attracted foreign investment and contributed to the growth of the IT Services market. Additionally, Estonia's membership in the European Union has provided access to a large market and regulatory framework, which has helped to facilitate the growth of IT services exports.

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.