IT Outsourcing - Laos

Laos

Revenue in the IT Outsourcing market is projected to reach US$49.62m in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 9.95%, resulting in a market volume of US$79.74m by 2029.
The average Spend per Employee in the IT Outsourcing market is projected to reach US$15.62 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

Laos, known for its beautiful landscapes and rich culture, is also experiencing a growing IT outsourcing market.

Customer preferences: Laos is attracting attention as a low-cost outsourcing destination for businesses looking to reduce costs. The country's workforce is young and educated, with a high number of IT graduates. Additionally, the government has been taking steps to improve the country's digital infrastructure, making it an attractive option for businesses looking to outsource their IT needs.

Trends in the market: One of the key trends in the IT outsourcing market in Laos is the growth of the software development industry. Many businesses are outsourcing software development to Laos due to the high number of IT graduates and the low cost of labor. Another trend is the growth of the e-commerce industry in Laos, which is driving demand for IT outsourcing services such as website development and digital marketing.

Local special circumstances: Laos is a landlocked country, which means that it lacks access to ports and other transportation infrastructure. This can make it more difficult and expensive to import and export goods, which can impact the IT outsourcing market. However, the government has been taking steps to improve the country's transportation infrastructure, which could help to mitigate this issue in the future.

Underlying macroeconomic factors: Laos is one of the fastest-growing economies in Southeast Asia, with a GDP growth rate of over 6% in recent years. This growth has been driven by a combination of factors, including increased investment in infrastructure and the expansion of the manufacturing sector. As the economy continues to grow, it is likely that the IT outsourcing market in Laos will also continue to expand. Additionally, the government has been taking steps to improve the country's business environment, which could help to attract more foreign investment in the future.

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.