IT Services - Hong Kong

Hong Kong

The IT Services market in Hong Kong is expected to see a significant increase in revenue, with projections indicating that it will reach US$8.00bn in 2024.
Among the various segments within this market, IT Outsourcing is predicted to dominate, with a projected market volume of US$3.02bn in the same year.
This demonstrates the strong presence and influence of IT Outsourcing in Hong Kong.
Furthermore, the IT Services market in Hong Kong is anticipated to experience consistent growth, with an estimated annual growth rate of 6.13% from 2024 to 2029.
This growth trajectory is expected to result in a market volume of US$10.77bn by 2029.
These figures highlight the promising prospects and potential for expansion within the IT Services market sector in Hong Kong.
In terms of Spend per Employee, the IT Services market in Hong Kong is projected to reach an average of US$2.15k in 2024.
This metric provides insight into the level of investment and expenditure within the industry, further underscoring the significance of IT Services market in Hong Kong's market landscape.
When considering global comparisons, it is worth noting that United States is expected to generate the highest revenue in the IT Services market, with projections indicating a figure of US$522.00bn in 2024.
This highlights the dominance of the United States and its strong position within the global IT Services market.
Overall, the IT Services market in Hong Kong is poised for growth and presents opportunities for both local and international players.
With its projected revenue, dominance of IT Outsourcing, and potential for expansion, the market in Hong Kong showcases its significance within the IT Services market industry.
Hong Kong's IT Services market is rapidly expanding, driven by the city's strong technological infrastructure and high demand for digital solutions.

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 Hong Kong has been rapidly growing in recent years, driven by a combination of customer preferences, local special circumstances, and underlying macroeconomic factors.

Customer preferences: Hong Kong customers are increasingly seeking out IT Services that can help them to improve their productivity and efficiency. This has led to a growing demand for cloud computing, data analytics, and cybersecurity services, which can help businesses to streamline their operations and protect their sensitive information.

Trends in the market: One of the key trends in the IT Services market in Hong Kong is the increasing adoption of cloud computing. Many businesses are moving away from traditional on-premise IT infrastructure and are instead opting for cloud-based solutions that offer greater flexibility and scalability. Another trend is the growing demand for data analytics services, as businesses seek to gain insights from the vast amounts of data that they are generating.

Local special circumstances: Hong Kong's position as a major financial hub has helped to drive the growth of the IT Services market. Many businesses in the financial sector require sophisticated IT solutions in order to manage their operations and ensure compliance with regulatory requirements. Additionally, Hong Kong's proximity to mainland China has made it an attractive location for businesses looking to expand into the Chinese market.

Underlying macroeconomic factors: The IT Services market in Hong Kong is also being driven by underlying macroeconomic factors. The city's strong economic growth and low unemployment rate have helped to create a favorable business environment, while the government's support for innovation and technology has encouraged the development of new IT solutions. Additionally, Hong Kong's strategic location and well-developed infrastructure have made it an attractive location for international businesses looking to establish a presence in Asia.

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.