IT Outsourcing - Hungary

Hungary

Hungary is projected to witness significant growth in its IT Outsourcing market.
By 2024, the projected revenue is expected to reach US$712.60m.
This growth is anticipated to continue with an annual growth rate (CAGR 2024-2029) of 10.22%, resulting in a market volume of US$1,159.00m by 2029.
Furthermore, the average Spend per Employee in the IT Outsourcing market is projected to reach US$141.40 in 2024.
This indicates the increasing demand for IT outsourcing services in Hungary and the potential for the market to expand further.
In comparison to other countries, United States is expected to generate the highest revenue in the IT Outsourcing market.
In 2024 alone, the projected revenue for the United States is estimated to be US$197.30bn.
This showcases the dominance of the United States in this market segment, while also highlighting the growth potential for Hungary to further establish itself as a competitive player in the IT Outsourcing market industry.
Hungary is becoming a preferred destination for IT outsourcing due to its highly skilled workforce and competitive costs.

Key regions: Brazil, Italy, United States, China, Germany

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.

For more information on the data displayed, use the info button right next to the boxes.

Market

Region

Region comparison

Currency

Analyst Opinion

Hungary, a country located in Central Europe, has been experiencing a steady growth in the IT Outsourcing market over the past few years.

Customer preferences: Companies in Hungary have been increasingly outsourcing IT services to reduce costs and improve efficiency. IT outsourcing has become a popular option for businesses in Hungary due to its cost-effectiveness and flexibility. Additionally, the IT talent pool in Hungary is highly skilled, making it an attractive destination for companies looking to outsource IT services.

Trends in the market: One of the trends in the IT Outsourcing market in Hungary is the increasing demand for cloud-based services. Many companies are now opting for cloud-based solutions to store and manage their data, which has led to an increase in demand for cloud-based IT outsourcing services. Another trend is the rise of automation in IT outsourcing. Companies are now using automation to streamline their IT processes and reduce costs.

Local special circumstances: Hungary has a highly skilled IT workforce, which makes it an attractive destination for companies looking to outsource IT services. The country also has a favorable business environment, with a low corporate tax rate and a well-developed infrastructure. Additionally, Hungary is a member of the European Union, which provides companies with access to a large market.

Underlying macroeconomic factors: The growth of the IT Outsourcing market in Hungary can be attributed to several macroeconomic factors. The country has a stable political environment and a growing economy, which has led to an increase in foreign investment. Additionally, Hungary has a highly educated workforce, which has helped to attract foreign companies looking to outsource IT services. The government has also implemented policies to support the growth of the IT sector, such as tax incentives for companies investing in research and development.

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.