IT Outsourcing - Jamaica

Jamaica

Revenue in the IT Outsourcing market is projected to reach US$46.35m in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 8.28%, resulting in a market volume of US$68.98m by 2029.
The average Spend per Employee in the IT Outsourcing market is projected to reach US$28.11 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

Jamaica, the third-largest island of the Greater Antilles, is a popular tourist destination known for its beautiful beaches, reggae music, and spicy cuisine. However, the country is also making strides in the IT outsourcing market.

Customer preferences: Jamaica's IT outsourcing market is driven by several factors, including cost-effectiveness, technical expertise, and language proficiency. The country's proximity to the United States, a large market for IT outsourcing, is also a major advantage. Jamaican companies are well-equipped to handle software development, application management, and business process outsourcing services.

Trends in the market: One of the major trends in the IT outsourcing market in Jamaica is the growth of the business process outsourcing (BPO) industry. The BPO sector has been a key driver of job creation in Jamaica, with several international companies setting up operations in the country. Jamaica is also home to several startups that are leveraging technology to offer innovative solutions in areas such as finance, healthcare, and education.

Local special circumstances: Jamaica's IT outsourcing market is unique in that it is heavily influenced by the country's cultural and historical ties to the United Kingdom. Jamaica was a British colony for over 300 years, and as a result, English is the official language of the country. This has made it easier for Jamaican companies to communicate with clients in the United States and other English-speaking countries.

Underlying macroeconomic factors: Jamaica's IT outsourcing market is also influenced by several macroeconomic factors, including government policies, infrastructure development, and investment in education and training. The government has implemented several policies aimed at promoting the growth of the IT industry, including tax incentives and investment in infrastructure. The country has also made significant investments in education and training, with a focus on developing technical skills in areas such as software development, data analysis, and cybersecurity.In conclusion, Jamaica's IT outsourcing market is poised for growth, driven by a combination of factors including cost-effectiveness, technical expertise, language proficiency, and government policies. The country's proximity to the United States and cultural ties to the United Kingdom are also major advantages. The growth of the BPO industry and the emergence of startups are key trends to watch in the coming years.

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.