IT Outsourcing - Belarus

Belarus

Revenue in the IT Outsourcing market is projected to reach US$174.10m in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 7.30%, resulting in a market volume of US$247.60m by 2029.
The average Spend per Employee in the IT Outsourcing market is projected to reach US$36.65 in 2024.
In global comparison, most revenue will be generated in the United States (US$197.30bn in 2024).

Key regions: Netherlands, United States, Japan, Germany, Italy

Definition:
The IT Outsourcing market refers to the external contracting of IT functions, services, or projects instead of relying on company-owned resources. By outsourcing IT tasks (e.g., to IT suppliers or software developers), enterprises are able to focus on their core functions and save internal resources and costs (e.g., office space, maintenance, and utilities). Thus, outsourcing teams becomes a viable cost resilience strategy in an environment where companies are looking to save money more than ever.

In an IT context, these activities include IT administration, IT application, and web hosting services. Non-IT-related outsourcing services are excluded.

Structure:

IT Outsourcing contains four distinct markets that are based on different services:

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.
Application Outsourcing refers to the market for all IT application services in a software production context, spanning from requirement assessments to concept and design of software applications.
Web Hosting includes all types of internet hosting services that allow companies or individuals to provide access to their web page via the World Wide Web.
Other IT Outsourcing refers to aggregated revenues of the types of IT outsourcing that are not specifically mentioned in the other IT Outsourcing markets, such as infrastructure outsourcing, network outsourcing, and managed services.

Additional Information:

The IT Outsourcing market comprises revenues, revenue change, average spend per employee, and revenues of the outsourcing types. 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, Accenture, Capgemini, NTT, and Hewlett Packard Enterprise.

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Market

Region

Region comparison

Currency

Analyst Opinion

Belarus, a country in Eastern Europe, has been gaining popularity as a destination for IT outsourcing services.

Customer preferences: Belarus has a highly skilled workforce in the IT sector, with a large number of IT graduates every year. This has led to an increase in demand for IT outsourcing services in the country. Additionally, Belarus offers cost-effective solutions for IT outsourcing, making it an attractive destination for businesses looking to cut costs.

Trends in the market: One of the main trends in the IT outsourcing market in Belarus is the increase in demand for software development services. Belarusian IT companies are known for their expertise in software development, which has led to an increase in demand for these services. Another trend in the market is the rise of mobile app development services. With the increasing use of smartphones and mobile devices, businesses are looking to develop mobile apps to reach their customers. Belarusian IT companies are well-equipped to provide these services, leading to an increase in demand.

Local special circumstances: Belarus has a unique advantage in the IT outsourcing market due to its location. It is located between Europe and Asia, making it an ideal location for businesses looking to outsource to both regions. Additionally, the government of Belarus has made significant efforts to promote the IT industry in the country. This has led to the establishment of numerous IT parks and special economic zones, which provide tax breaks and other incentives to IT companies.

Underlying macroeconomic factors: The IT outsourcing market in Belarus is also influenced by macroeconomic factors. The country has a stable political environment and a well-developed IT infrastructure, which makes it an attractive destination for businesses looking to outsource. Additionally, the country has a highly skilled workforce and a low cost of living, which makes it an affordable destination for businesses. However, the IT outsourcing market in Belarus is also influenced by global economic conditions. A slowdown in the global economy could lead to a decrease in demand for IT outsourcing services.

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.