IT Services - Iceland

Iceland

Revenue in the IT Services market is projected to reach US$274.50m in 2024.
IT Outsourcing dominates the market with a projected market volume of US$93.41m in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 8.03%, resulting in a market volume of US$403.90m by 2029.
The average Spend per Employee in the IT Services market is projected to reach US$1,088.00 in 2024.
In global comparison, most revenue will be generated in the United States (US$522.00bn in 2024).

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

Iceland, the land of fire and ice, is known for its stunning landscapes, geothermal pools, and the Northern Lights. However, the country has much more to offer than just natural wonders. The IT Services market in Iceland is experiencing steady growth, driven by various factors.

Customer preferences: Icelandic customers are increasingly looking for IT Services that can help them streamline their businesses, improve their productivity, and reduce costs. They are also looking for solutions that are easy to use, secure, and scalable. Cloud-based services are gaining popularity in Iceland, as they offer flexibility and cost-effectiveness.

Trends in the market: One of the major trends in the IT Services market in Iceland is the adoption of digital transformation. Icelandic businesses are investing in digital technologies to improve their operations and customer experience. Another trend is the increasing demand for cybersecurity services, as businesses are becoming more aware of the risks associated with cyber threats. Managed services are also gaining traction in Iceland, as they offer businesses the ability to outsource their IT needs to specialized providers.

Local special circumstances: Iceland has a small population and a limited market, which presents challenges for businesses operating in the country. However, the country has a highly educated workforce with a strong background in technology. The government also offers various incentives to attract foreign investment and encourage innovation. Additionally, Iceland's unique geography and climate have led to the development of specialized industries, such as geothermal energy and fisheries, which require specific IT solutions.

Underlying macroeconomic factors: Iceland's economy has been growing steadily in recent years, driven by strong tourism and export sectors. The country has a high standard of living and a well-developed infrastructure, which makes it an attractive location for businesses. Iceland's government has also implemented policies to encourage innovation and entrepreneurship, which has led to the growth of the IT Services market. However, the country's small population and limited market size present challenges for businesses looking to expand in Iceland.In conclusion, the IT Services market in Iceland is experiencing steady growth, driven by the adoption of digital transformation, increasing demand for cybersecurity services, and the popularity of cloud-based solutions. Icelandic businesses are looking for IT Services that can help them streamline their operations, improve productivity, and reduce costs. While the country's small population and limited market size present challenges, Iceland's highly educated workforce, specialized industries, and government incentives make it an attractive location for businesses looking to invest in the IT Services market.

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.