IT Services - EU-27

EU-27

The IT Services market in EU-27 is estimated to achieve a revenue of US$303.50bn by the year 2024.
Within this market segment, IT Outsourcing is expected to dominate with a projected market volume of US$120.70bn in 2024.
Looking ahead, the revenue is anticipated to exhibit an annual growth rate of 5.16% (CAGR 2024-2029), resulting in a market volume of US$390.40bn by 2029.
When examining the average Spend per Employee, it is projected to reach US$1,353.00 in 2024 within the IT Services market.
In a global context, United States is expected to generate the highest revenue, amounting to US$522.00bn in 2024.
The IT Services market in Germany is experiencing a surge in demand due to the country's strong focus on technological innovation and digital transformation.

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

The IT Services market in EU-27 is a constantly evolving sector, driven by rapid technological advancements and changing customer preferences.

Customer preferences: Customers in the EU-27 region are increasingly demanding personalized and innovative IT solutions that can help them streamline their business operations and improve efficiency. They are also more conscious of cybersecurity risks and are willing to invest in IT services that can provide robust security measures.

Trends in the market: The IT Services market in Germany is witnessing a surge in demand for cloud-based solutions, as businesses seek to adopt more flexible and scalable IT infrastructure. In France, there is a growing trend towards outsourcing IT services to third-party providers, as companies look to reduce costs and focus on core business activities. The UK market is experiencing a shift towards digital transformation, with a particular emphasis on artificial intelligence and machine learning technologies.

Local special circumstances: The IT Services market in Italy is heavily influenced by the country's large small and medium-sized enterprise (SME) sector. SMEs in Italy are increasingly investing in IT services to improve their competitiveness and expand their customer base. In Spain, the IT Services market is being driven by the country's thriving tourism industry, with many businesses seeking IT solutions that can enhance the customer experience.

Underlying macroeconomic factors: The IT Services market in EU-27 is also influenced by underlying macroeconomic factors such as GDP growth, employment rates, and government policies. The ongoing COVID-19 pandemic has had a significant impact on the market, with many businesses forced to adopt remote working practices and invest in digital technologies. The EU's Digital Single Market initiative is also driving growth in the IT Services sector, by promoting the development of digital infrastructure and encouraging cross-border collaboration.

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.