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IT Outsourcing - Taiwan

Taiwan
  • The IT Outsourcing market in Taiwan is expected to witness significant growth in the coming years.
  • By 2025, the projected revenue is estimated to reach US$3.75bn.
  • This substantial figure highlights the country's potential in the IT sector.
  • Furthermore, the market is anticipated to exhibit an impressive annual growth rate of 8.29% from 2025 to 2029, resulting in a market volume of US$5.16bn by the end of the forecast period.
  • Such growth indicates the increasing demand for IT outsourcing services in Taiwan.
  • When it comes to assessing the average Spend per Employee in the IT Outsourcing market, it is projected to reach US$144.09 in 2025.
  • This figure signifies the investment made by companies in Taiwan towards enhancing their IT capabilities through outsourcing.
  • In a global context, United States is expected to generate the highest revenue in the IT Outsourcing market, with an estimated revenue of US$213.57bn in 2025.
  • This statistic highlights the dominance of the United States in this market segment, while also emphasizing the potential for growth in other regions, including in Taiwan.
  • Taiwan's IT Outsourcing market is thriving due to its highly skilled workforce and competitive pricing.

Revenue

Notes: Data was converted from local currencies using average exchange rates of the respective year.

Most recent update: Apr 2024

Source: Statista Market Insights

Notes: The chart “Comparable Estimates” shows the forecasted development of the selected market from different sources. Please see the additional information for methodology and publication date.

Most recent update: Apr 2024

Notes: Data was converted from local currencies using average exchange rates of the respective year.

Most recent update: Apr 2024

Source: Statista Market Insights

Key Players

Most recent update: Dec 2024

Source: Statista Market Insights

Analyst Opinion

Taiwan, known for its advanced technology and skilled workforce, has been a popular destination for IT outsourcing services.

Customer preferences:
Companies in Taiwan are increasingly outsourcing their IT services to third-party vendors to reduce costs and increase efficiency. Small and medium-sized enterprises (SMEs) are particularly interested in outsourcing as they lack the resources to maintain an in-house IT team. Additionally, Taiwan's IT outsourcing market is seeing a rise in demand for cloud-based services as companies look to move their operations online.

Trends in the market:
One trend in the IT outsourcing market in Taiwan is the increasing popularity of nearshoring. Taiwanese companies are turning to nearby countries such as Vietnam and the Philippines for outsourcing services due to lower labor costs and proximity. Another trend is the rise of artificial intelligence (AI) and machine learning (ML) outsourcing services. As Taiwan continues to invest in AI and ML technology, companies are looking to outsource these services to third-party vendors with expertise in these areas.

Local special circumstances:
Taiwan's IT outsourcing market is unique due to its close proximity to China. Taiwanese companies are able to leverage their cultural and linguistic similarities with China to provide outsourcing services to Chinese companies. Additionally, Taiwan's government has been actively promoting the country as a hub for innovation and technology, which has attracted foreign companies to outsource their IT services to Taiwan.

Underlying macroeconomic factors:
Taiwan's IT outsourcing market is heavily influenced by the global economy. As the world becomes increasingly interconnected, companies are looking to outsource their IT services to countries with skilled workforces and advanced technology. Additionally, Taiwan's government policies and investments in technology have helped to create a favorable environment for IT outsourcing services. However, the ongoing trade tensions between the US and China may have an impact on Taiwan's IT outsourcing market as companies may be hesitant to outsource to a country that is closely tied to China.

Global Comparison

Notes: Data was converted from local currencies using average exchange rates of the respective year.

Most recent update: Apr 2024

Sources: Statista Market Insights, Financial Statements of Key Players, National statistical offices

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.

Technology

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Key Market Indicators

Notes: Based on data from IMF, World Bank, UN and Eurostat

Most recent update: Jan 2025

Source: Statista Market Insights

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