IT Services - Iraq

Iraq

Revenue in the IT Services market is projected to reach US$1,034.00m in 2024.
IT Outsourcing dominates the market with a projected market volume of US$399.80m in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 5.02%, resulting in a market volume of US$1,321.00m by 2029.
The average Spend per Employee in the IT Services market is projected to reach US$85.94 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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Market

Region

Region comparison

Currency

Analyst Opinion

The IT Services market in Iraq has been developing at a steady pace in recent years, driven by a growing demand for digital solutions in various industries.

Customer preferences: Iraqi businesses are increasingly recognizing the value of investing in IT services to streamline their operations and improve efficiency. Many companies are looking for customized solutions that can address their specific needs and challenges. Additionally, there is a growing interest in cloud-based services, as they offer scalability and cost-effectiveness.

Trends in the market: One of the key trends in the IT Services market in Iraq is the rise of e-commerce. As more consumers turn to online shopping, businesses are looking for ways to improve their online presence and offer a seamless shopping experience. This has led to an increased demand for web development and digital marketing services.Another trend is the adoption of mobile technologies. With a high percentage of Iraqis owning smartphones, businesses are looking to develop mobile applications to engage with customers and improve their overall experience. Additionally, there is a growing interest in cybersecurity services, as businesses seek to protect themselves from cyber threats and data breaches.

Local special circumstances: The IT Services market in Iraq is still in its early stages, and there are several challenges that businesses face. One of the main challenges is the lack of infrastructure, which can make it difficult to provide reliable and high-speed internet connectivity. Additionally, there is a shortage of skilled IT professionals, which can make it challenging for businesses to find the right talent.

Underlying macroeconomic factors: The Iraqi economy has been affected by several factors in recent years, including political instability and the COVID-19 pandemic. However, the government has been taking steps to improve the business environment and attract foreign investment. The country has also been investing in infrastructure projects, such as the construction of new airports and the expansion of its transportation network. These developments are expected to create new opportunities for the IT Services market in Iraq.

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.