IT Outsourcing - Netherlands

Netherlands

Revenue in the IT Outsourcing market is projected to reach US$10.61bn in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 7.65%, resulting in a market volume of US$15.34bn by 2029.
The average Spend per Employee in the IT Outsourcing market is projected to reach US$1,039.00 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

The Netherlands is known for its highly competitive and innovative IT industry, with a strong emphasis on research and development. The IT Outsourcing market in the country has been steadily growing in recent years, driven by various factors.

Customer preferences: Dutch companies are increasingly turning to IT Outsourcing to reduce costs, improve efficiency, and access specialized skills. They are also looking to leverage the latest technologies such as cloud computing, artificial intelligence, and the Internet of Things to stay competitive in the global market. In addition, many Dutch companies are expanding their operations to other countries, which has led to a greater demand for IT Outsourcing services.

Trends in the market: One of the major trends in the IT Outsourcing market in the Netherlands is the growing adoption of nearshoring. Many Dutch companies are choosing to outsource their IT services to neighboring countries such as Poland, Romania, and Ukraine, which offer lower costs and a similar cultural and business environment. This trend is expected to continue in the coming years as companies look for ways to reduce costs and improve efficiency.Another trend in the market is the increasing demand for cybersecurity services. With the rise of cyber threats and data breaches, Dutch companies are looking for IT Outsourcing providers who can offer robust cybersecurity solutions to protect their sensitive information. This has led to a growing number of IT Outsourcing providers specializing in cybersecurity services.

Local special circumstances: The Netherlands has a highly skilled workforce and a favorable business environment, which has attracted many multinational companies to set up their operations in the country. This has created a strong demand for IT Outsourcing services, particularly in the areas of software development, infrastructure management, and data analytics. In addition, the Dutch government has been actively promoting the country as a hub for innovation and technology, which has further boosted the IT Outsourcing market.

Underlying macroeconomic factors: The Dutch economy has been growing steadily in recent years, with a focus on innovation and technology. This has created a favorable environment for the IT Outsourcing market, as companies are looking for ways to leverage the latest technologies to stay competitive. In addition, the Netherlands has a highly educated workforce and a strong culture of entrepreneurship, which has led to a thriving IT industry. The country also has a favorable tax regime and a stable political environment, which makes it an attractive destination for foreign investors.

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.