IT Outsourcing - Montenegro

Montenegro

Revenue in the IT Outsourcing market is projected to reach US$17.25m in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 9.58%, resulting in a market volume of US$27.26m by 2029.
The average Spend per Employee in the IT Outsourcing market is projected to reach US$58.99 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

Montenegro, a small country located in the Balkans, has been experiencing a steady growth in its IT Outsourcing market in recent years.

Customer preferences: One of the main reasons for this growth is Montenegro's highly skilled and educated workforce. Many young Montenegrins are fluent in English and have technical degrees, making them attractive to foreign companies looking to outsource their IT needs. Additionally, Montenegro's location in the heart of the Balkans provides easy access to both Eastern and Western Europe, making it an ideal location for companies looking to expand their business in the region.

Trends in the market: In recent years, Montenegro has seen an increase in the number of IT companies opening offices in the country. This has led to a rise in demand for IT professionals, and as a result, salaries in the industry have been increasing. Additionally, there has been a shift towards more specialized IT services, such as software development and cybersecurity, as companies look for more sophisticated solutions to their IT needs.

Local special circumstances: Montenegro's small size and relatively underdeveloped infrastructure can pose challenges for companies looking to establish a presence in the country. However, the government has been working to improve the business environment, including implementing tax incentives for foreign investors and streamlining the process for obtaining work permits for foreign workers.

Underlying macroeconomic factors: Montenegro's economy has been growing steadily in recent years, with tourism and foreign investment driving much of the growth. The government has also been investing in infrastructure projects, such as the construction of a new highway and the expansion of the country's main airport. These factors have helped to create a more favorable business environment, which has in turn attracted more foreign companies to the country.Overall, the IT Outsourcing market in Montenegro is poised for continued growth in the coming years. With a highly skilled workforce, favorable business environment, and growing demand for specialized IT services, Montenegro is well-positioned to become a major player in the global IT outsourcing 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.