IT Outsourcing - Lebanon

Lebanon

The IT Outsourcing market in Lebanon is expected to witness significant growth in the coming years.
According to projections, the revenue in this sector is expected to reach US$82.41m in 2025.
Furthermore, the market is anticipated to exhibit a compound annual growth rate (CAGR 2025-2029) of 6.17%, resulting in a market volume of US$104.70m by 2029.
In terms of the average Spend per Employee, it is estimated to reach US$43.82 in 2025.
This metric provides insights into the level of investment made per employee in the IT Outsourcing market sector.
When comparing in Lebanon to other countries on a global scale, it is noteworthy that United States is projected to generate the highest revenue in the IT Outsourcing market, with an estimated value of US$213.60bn in 2025.
This highlights the dominance of the US in this industry.
Overall, these figures indicate the promising potential and growth prospects of the IT Outsourcing market in Lebanon.
Lebanon's IT outsourcing market is thriving, with a highly skilled workforce and a strategic location for serving both European and Middle Eastern clients.

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

Lebanon, a small country in the Middle East, has been making a name for itself in the IT outsourcing market in recent years. With a young and educated workforce, Lebanon has become an attractive destination for companies looking to outsource their IT needs.

Customer preferences: Lebanon's IT outsourcing market has been growing due to several factors. Firstly, companies are looking to cut costs by outsourcing their IT needs to countries where labor is cheaper. Secondly, Lebanese IT professionals have a reputation for being highly skilled and well-educated, making them an attractive option for companies looking for quality work. Finally, Lebanon's location in the Middle East makes it an ideal location for companies looking to expand into the region.

Trends in the market: One trend that is emerging in Lebanon's IT outsourcing market is the rise of startups. Many young entrepreneurs are starting their own companies and are looking to outsource their IT needs to save costs. This has led to the emergence of a new breed of IT outsourcing companies that cater specifically to startups. Another trend is the increased demand for mobile app development. As more and more people use smartphones, there is a growing need for companies to develop mobile apps to reach their customers.

Local special circumstances: Lebanon's IT outsourcing market is unique in that it is heavily influenced by the country's political and economic situation. The ongoing political instability in the country has led to a brain drain, with many skilled professionals leaving the country in search of better opportunities abroad. This has created a shortage of skilled IT professionals in the country, which has led to higher wages and increased competition for talent. Additionally, the country's weak economy has led to a lack of investment in the IT sector, which has made it difficult for local companies to compete with larger, more established players in the market.

Underlying macroeconomic factors: Lebanon's IT outsourcing market is also influenced by broader macroeconomic factors. The country's location in the Middle East makes it an attractive destination for companies looking to expand into the region. Additionally, the country's relatively low labor costs make it an attractive option for companies looking to cut costs. However, the ongoing political instability in the country has made it difficult for companies to operate, and the country's weak economy has made it difficult for local companies to compete with larger, more established players in the market.

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.