IT Outsourcing - Iraq

Iraq

Revenue in the IT Outsourcing market is projected to reach US$399.80m in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 7.97%, resulting in a market volume of US$586.50m by 2029.
The average Spend per Employee in the IT Outsourcing market is projected to reach US$33.22 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

Iraq, a country located in the Middle East, has been experiencing a growing trend in the IT Outsourcing market.

Customer preferences: Iraqi companies have been increasingly outsourcing their IT services to other countries in order to reduce costs and improve the quality of their services. This is due to a lack of skilled IT professionals in the country, as well as the high costs of maintaining an in-house IT team. Additionally, many Iraqi companies are looking to expand their businesses and outsourcing IT services allows them to focus on their core competencies.

Trends in the market: The IT Outsourcing market in Iraq is primarily focused on software development and maintenance services. Many companies are outsourcing their software development projects to other countries such as India and Pakistan, where there is a large pool of skilled IT professionals at a lower cost. Additionally, many Iraqi companies are outsourcing their IT infrastructure management and support services to other countries in order to reduce costs and improve the quality of their services.

Local special circumstances: The IT Outsourcing market in Iraq is heavily influenced by the country's political and economic situation. The country has been facing a number of challenges, including political instability, security issues, and economic sanctions. These factors have made it difficult for Iraqi companies to attract foreign investment and access international markets. However, the government has been taking steps to improve the business environment and attract foreign investment, which is expected to boost the IT Outsourcing market in the country.

Underlying macroeconomic factors: The IT Outsourcing market in Iraq is expected to grow in the coming years due to a number of underlying macroeconomic factors. These include the country's young and tech-savvy population, which is driving demand for IT services, as well as the government's efforts to modernize the country's infrastructure and develop its digital economy. Additionally, the country's strategic location in the Middle East and its access to key markets such as Europe and Asia make it an attractive destination 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.