Administration Outsourcing - CIS | Statista Market Forecast

Revenue in the Administration Outsourcing market is projected to reach US$671.90m in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 3.71%, resulting in a market volume of US$806.10m by 2029.
The average Spend per Employee in the Administration Outsourcing market is projected to reach US$5.80 in 2024.
In global comparison, most revenue will be generated United States (US$27.29bn in 2024).

Definition :
Administration Outsourcing refers to the market for services associated with the external sourcing of typical IT administration tasks such as hardware supply, setup, configuration, maintenance, security, and support. This market contains all services related to the provision of physical IT equipment, whereas the support of company-owned software is not included.

Administration outsourcing allows organizations to optimize their administrative processes, improve efficiency, and focus on core competencies.

Additional Information:

The Administration Outsourcing 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 Hewlett Packard Enterprise, IBM, Accenture, Capgemini, and CGI.

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Hardware supply, such as Cisco Systems, Hewlett Packard Enterprise (HPE), and Dell Technologies
Hardware configuration, such as CDW (CDW Corporation), World Wide Technology (WWT), and ProSys Information Systems
Hardware maintenance, such as IBM Technology Support Services, Innovative Computer Systems, and Maintech
Security and support, such as Rapid7, Check Point Software Technologies, and Trend Micro

Application outsourcing, such as ScienceSoft, Arcanys, and SumatoSoft
Web hosting, such as GoDaddy, Bluehost, and Amazon Web Services
Customer relationship management, such as Salesforce, SAP Customer Experience(C/4HANA), and Microsoft Dynamics 365
Support of core business functions

The Administration Outsourcing market in CIS has been experiencing significant growth in recent years.

Customer preferences: One of the main reasons for the growth of the Administration Outsourcing market in CIS is the increasing demand from customers for cost-efficient and high-quality administrative services. Many companies in the region are looking to outsource their administrative tasks to third-party service providers in order to reduce costs and focus on their core business activities. Additionally, the trend of digitalization has led to a growing need for companies to outsource their IT and back-office functions.

Trends in the market: The Administration Outsourcing market in CIS has been witnessing a number of trends in recent years. One of the key trends is the increasing popularity of cloud-based solutions, which offer greater flexibility and scalability compared to traditional outsourcing models. Another trend is the growing demand for specialized services, such as accounting, HR and payroll outsourcing. Finally, there is a trend towards outsourcing services to providers that are located in the same region, in order to benefit from local knowledge and expertise.

Local special circumstances: The Administration Outsourcing market in CIS is characterized by a number of local special circumstances. For example, the region has a large pool of highly-skilled and educated professionals who are able to provide a wide range of administrative services. Additionally, many countries in the region have established themselves as attractive outsourcing destinations due to their favorable business environments, low labor costs, and proximity to major markets in Europe and Asia.

Underlying macroeconomic factors: The growth of the Administration Outsourcing market in CIS is also being driven by a number of underlying macroeconomic factors. These include the region's large and growing population, which provides a significant source of labor for service providers. Additionally, the region's strategic location between Europe and Asia has made it an attractive destination for companies looking to expand their operations in these regions. Finally, the ongoing process of economic reform and modernization in many CIS countries is creating new opportunities for outsourcing providers to offer their services to a growing number of businesses in the region.

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.

This report presents a comprehensive analysis and additional information on the Technology market, in a PDF format.

Unseen yet omnipresent, Information Technology (IT) services are the invisible gears driving modern organizations. These services support business operations and digital transformation through outsourcing, managed services, security, data management, and cloud computing. By leveraging these services, companies enhance efficiency, reduce costs, and gain competitive advantages in a digital marketplace. Prominent cloud providers worldwide include Amazon Web Services, Microsoft Azure, Google Cloud, and Alibaba Cloud. In the managed services sector, Oracle, Accenture, and IBM are among the largest providers globally.