IT Outsourcing - Turkmenistan

Turkmenistan

Revenue in the IT Outsourcing market is projected to reach US$152.70m in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 12.98%, resulting in a market volume of US$281.10m by 2029.
The average Spend per Employee in the IT Outsourcing market is projected to reach US$72.92 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

Turkmenistan, a country located in Central Asia, has been experiencing a steady growth in its IT outsourcing market in recent years.

Customer preferences: Turkmenistan has a young and tech-savvy population that is increasingly interested in technology and digital services. This has led to a growing demand for IT outsourcing services, especially in software development and web design. Additionally, Turkmenistan's proximity to major IT outsourcing hubs such as India, China, and Russia has made it an attractive destination for companies looking to outsource their IT needs.

Trends in the market: One of the key trends in Turkmenistan's IT outsourcing market is the increasing focus on quality and innovation. Companies are no longer just looking for cost savings, but also for high-quality services that can help them stay competitive in the global market. As a result, IT outsourcing providers in Turkmenistan are investing in new technologies and talent to meet these demands.Another trend in the market is the growing popularity of cloud computing services. With the increasing adoption of cloud-based technologies, companies are looking for IT outsourcing providers that can help them migrate their systems to the cloud. This has created new opportunities for IT outsourcing providers in Turkmenistan to offer cloud-based solutions and services.

Local special circumstances: Turkmenistan's government has been actively promoting the development of the country's IT sector, with a focus on creating a favorable business environment for IT outsourcing companies. The government has established several technology parks and innovation centers to support the growth of the IT industry, and has also implemented policies to attract foreign investment in the sector.

Underlying macroeconomic factors: Turkmenistan's economy is heavily dependent on its natural gas reserves, which account for the majority of the country's export earnings. However, the government has been working to diversify the economy and reduce its reliance on the energy sector. The development of the IT industry is seen as a key part of this diversification strategy, and the government has been investing in the sector to support its growth.In conclusion, Turkmenistan's IT outsourcing market is experiencing significant growth, driven by a young and tech-savvy population, increasing demand for quality and innovation, and government support for the development of the IT sector. As the country continues to diversify its economy, the IT outsourcing market is likely to play an increasingly important role in driving economic growth and creating new opportunities for businesses.

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.