IT Outsourcing - Cambodia

Cambodia

Revenue in the IT Outsourcing market is projected to reach US$81.29m in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 11.82%, resulting in a market volume of US$142.10m by 2029.
The average Spend per Employee in the IT Outsourcing market is projected to reach US$8.76 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

IT outsourcing has been a growing trend in Cambodia in recent years, with more and more companies turning to outsourcing as a way to cut costs and improve efficiency. Cambodia's IT outsourcing market is still relatively small compared to other countries in the region, but it is growing rapidly as more companies discover the benefits of outsourcing.

Customer preferences: Cambodia's IT outsourcing market is primarily driven by small and medium-sized businesses that are looking to cut costs and improve efficiency. These companies are typically looking for outsourcing partners that can provide high-quality services at a reasonable price. Many companies in Cambodia are also looking for outsourcing partners that can provide a wide range of services, including software development, web design, and digital marketing.

Trends in the market: One of the key trends in Cambodia's IT outsourcing market is the growing demand for software development services. As more companies in Cambodia look to develop their own software applications, they are turning to outsourcing partners that can provide the expertise and resources they need. Another key trend is the increasing popularity of digital marketing services, as more companies look to expand their online presence and reach new customers.

Local special circumstances: One of the unique factors that is driving the growth of Cambodia's IT outsourcing market is the country's young and highly educated population. Cambodia has a large number of young people who are fluent in English and have the technical skills needed to work in the IT industry. This has made Cambodia an attractive destination for outsourcing partners who are looking for skilled and affordable labor.

Underlying macroeconomic factors: Cambodia's IT outsourcing market is also being driven by a number of underlying macroeconomic factors, including the country's low labor costs and favorable business environment. Cambodia has one of the lowest minimum wages in the region, which has made it an attractive destination for outsourcing partners who are looking to cut costs. Additionally, Cambodia has a relatively stable political environment and a government that is supportive of foreign investment, which has helped to create a favorable business environment for outsourcing companies.

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.