IT Services - Hungary

Hungary

The IT Services market in Hungary is expected to witness significant growth, with projected revenue reaching US$1.97bn in 2024.
The dominant segment in this market is IT Outsourcing, which is projected to have a market volume of US$0.71bn in the same year.
The industry is anticipated to exhibit a steady annual growth rate of 7.36% (CAGR 2024-2029), resulting in a market volume of US$2.81bn by 2029.
Furthermore, the average Spend per Employee in the IT Services market is projected to reach US$390.00 in 2024.
When compared globally, United States is expected to generate the highest revenue, amounting to US$522.00bn in 2024.
This highlights the strong presence and significance of the IT Services market in Hungary.
Hungary's IT Services market is experiencing a surge in demand for software development and outsourcing services due to its skilled workforce and competitive prices.

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

Hungary, a country in Central Europe, has been experiencing a steady growth in the IT Services market in recent years.

Customer preferences: Hungarian customers are increasingly demanding IT services that are tailored to their specific needs. They are looking for solutions that are efficient, cost-effective and can be easily integrated into their existing systems. Additionally, there is a growing demand for cloud-based services, as businesses seek to reduce their IT infrastructure costs and increase their flexibility.

Trends in the market: One of the key trends in the Hungarian IT Services market is the increasing adoption of digital transformation solutions. As businesses look to modernize their operations and stay competitive, they are investing in technologies such as artificial intelligence, big data analytics, and the Internet of Things (IoT). This has led to a growing demand for IT consulting and system integration services.Another trend in the market is the rising popularity of outsourcing. Many Hungarian businesses are turning to outsourcing as a way to reduce their costs and improve their efficiency. This has created opportunities for IT service providers who can offer high-quality services at competitive prices.

Local special circumstances: Hungary has a highly skilled workforce in the IT sector, which has helped to drive the growth of the IT Services market. The country has a strong education system and a large pool of talented IT professionals, which has made it an attractive location for outsourcing IT services.

Underlying macroeconomic factors: The Hungarian economy has been growing steadily in recent years, which has led to an increase in business confidence and investment. This has created a favorable environment for the IT Services market, as businesses look to invest in technologies that can help them stay competitive.In conclusion, the IT Services market in Hungary is experiencing steady growth, driven by customer demand for tailored solutions, the adoption of digital transformation technologies, and the rising popularity of outsourcing. With a highly skilled workforce and a favorable macroeconomic environment, Hungary is well-positioned to continue to grow its IT Services market in the years to come.

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.