IT Outsourcing - Benelux

Benelux

Revenue in the IT Outsourcing market is projected to reach US$14.89bn in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 7.60%, resulting in a market volume of US$21.48bn by 2029.
The average Spend per Employee in the IT Outsourcing market is projected to reach US$931.80 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

The IT Outsourcing market in Benelux has been experiencing significant growth in recent years, driven by a number of factors.

Customer preferences: Businesses in Benelux are increasingly turning to IT outsourcing as a means of reducing costs and increasing efficiency. Many companies are finding that outsourcing IT functions such as software development, data management, and technical support can help them to focus on core business activities while still benefiting from the latest technology. Additionally, outsourcing can help businesses to access a wider pool of talent and expertise, which can be especially valuable in a highly competitive market.

Trends in the market: One of the key trends in the IT outsourcing market in Benelux is the growing demand for cloud-based services. As more companies move their operations online, they are looking for flexible and scalable solutions that can adapt to changing business needs. Cloud-based outsourcing services offer a range of benefits, including lower upfront costs, greater flexibility, and improved security. In addition, there is a growing trend towards nearshoring, with many companies choosing to outsource IT functions to nearby countries such as Poland, Romania, and Ukraine.

Local special circumstances: The IT outsourcing market in Benelux is also influenced by a number of local factors. For example, the region has a highly educated workforce and a strong tradition of innovation, which has helped to drive the growth of the IT sector. In addition, the region's central location and excellent transport links make it an attractive location for businesses looking to outsource IT functions to other parts of Europe.

Underlying macroeconomic factors: The growth of the IT outsourcing market in Benelux is also influenced by a number of macroeconomic factors. For example, the region has a stable political and economic environment, which makes it an attractive location for businesses looking to outsource IT functions. In addition, the region has a highly developed infrastructure, including world-class telecommunications networks and data centres, which makes it an ideal location for IT outsourcing services.Overall, the IT outsourcing market in Benelux is expected to continue to grow in the coming years, driven by a range of factors including customer preferences, local special circumstances, and underlying macroeconomic factors. As businesses in the region increasingly turn to outsourcing as a means of reducing costs and increasing efficiency, the market is likely to become increasingly competitive, with a growing range of providers offering a range of services to meet the needs of businesses of all sizes.

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.