IT Outsourcing - Latvia

  • Latvia
  • Revenue in the IT Outsourcing market is projected to reach US$107.40m in 2024.
  • Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 9.88%, resulting in a market volume of US$172.00m by 2029.
  • The average Spend per Employee in the IT Outsourcing market is projected to reach US$109.50 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

 
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Analyst Opinion

The IT Outsourcing market in Latvia has been steadily growing over the past few years.

Customer preferences:
Latvia has been attracting IT outsourcing customers due to its geographical location, which makes it accessible to both Western and Eastern European markets. Additionally, the country has a highly skilled workforce, with a large number of IT professionals. This has made Latvia an attractive destination for companies looking for cost-effective IT solutions.

Trends in the market:
One of the major trends in the IT outsourcing market in Latvia is the increasing demand for cloud-based solutions. This is due to the growing need for businesses to store and manage large amounts of data. Another trend is the rise of artificial intelligence and machine learning, which is driving the development of new software and applications.

Local special circumstances:
Latvia has a unique advantage in the IT outsourcing market due to its strong cultural ties with Scandinavia. This has led to a number of Nordic companies outsourcing their IT needs to Latvia. Additionally, the country has a strong focus on innovation and technology, which has helped to attract IT outsourcing customers.

Underlying macroeconomic factors:
Latvia has a stable and growing economy, which has helped to attract foreign investment in the IT sector. The government has also implemented a number of policies to encourage the growth of the IT industry, including tax incentives and funding for research and development. Additionally, the country has a highly developed infrastructure, which makes it an attractive destination for IT 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.

Overview

  • Revenue
  • Key Players
  • Analyst Opinion
  • Global Comparison
  • Methodology
  • Key Market Indicators
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