IT Outsourcing - Thailand

Thailand

The IT Outsourcing market in Thailand is expected to see significant growth in the coming years.
According to projections, the revenue in this sector is set to reach US$959.00m in 2024.
Additionally, it is anticipated that the market will experience a steady annual growth rate of 9.45% (CAGR 2024-2029), resulting in a market volume of US$1,506.00m by 2029.
In terms of spending, the average Spend per Employee in the IT Outsourcing market is forecasted to reach US$23.83 in 2024.
This indicates the level of investment that companies in Thailand are willing to make in IT outsourcing services.
When compared to other countries, it is important to note that United States is expected to generate the highest revenue in the IT Outsourcing market.
In 2024 alone, the revenue United States is projected to reach an impressive US$197.30bn.
This highlights the significant role that United States plays in the global IT Outsourcing market industry.
Overall, these figures demonstrate the potential for growth and development in the IT Outsourcing market in Thailand.
As businesses continue to recognize the benefits of outsourcing their IT needs, the market is poised to expand and contribute to the country's economic growth.
Thailand's IT Outsourcing market is thriving due to its skilled workforce, competitive costs, and supportive government policies.

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.

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Market

Region

Region comparison

Currency

Analyst Opinion

Thailand, known for its beautiful beaches and temples, has been making strides in the IT Outsourcing market in recent years.

Customer preferences: The country has a strong pool of IT talent and a favorable business environment that has attracted many multinational companies to set up their operations in the country. The Thai government has been actively promoting the IT sector and has implemented policies to support the growth of the industry.

Trends in the market: The IT Outsourcing market in Thailand has been growing steadily over the past few years. The country has become a popular destination for IT outsourcing due to its competitive pricing, skilled workforce, and favorable business environment. Many companies are outsourcing their IT operations to Thailand to take advantage of these benefits. The demand for IT outsourcing services in Thailand is expected to continue to grow in the coming years.

Local special circumstances: Thailand has a unique advantage in the IT Outsourcing market due to its proximity to other countries in the region. The country serves as a gateway to Southeast Asia and has strong ties with its neighboring countries. This makes it an attractive location for companies looking to expand their operations in the region.

Underlying macroeconomic factors: The Thai government has been actively promoting the IT sector and has implemented policies to support the growth of the industry. The government has also invested heavily in infrastructure development, which has helped to create a favorable business environment for IT companies. Additionally, the country has a strong pool of IT talent, which has helped to attract many multinational companies to set up their operations in the country.

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.