IT Outsourcing - Uruguay

Uruguay

Revenue in the IT Outsourcing market is projected to reach US$237.40m in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 9.17%, resulting in a market volume of US$368.20m by 2029.
The average Spend per Employee in the IT Outsourcing market is projected to reach US$133.00 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

Uruguay, a small country in South America, has been making strides in the IT Outsourcing market in recent years.

Customer preferences: Uruguay's IT Outsourcing market has been growing due to its highly skilled workforce and competitive pricing. Many businesses in North America and Europe have been outsourcing their IT work to Uruguay due to its proximity and time zone compatibility. Additionally, Uruguay has a strong emphasis on education and training in technology, which has produced a skilled workforce that is attractive to companies seeking outsourcing services.

Trends in the market: One trend in the IT Outsourcing market in Uruguay is the increasing demand for nearshore outsourcing services. Many businesses in the United States and Canada are turning to Uruguay for their IT needs due to its close proximity and cultural similarities. Additionally, Uruguay has been investing in its technology infrastructure, which has made it easier for businesses to outsource their IT work to the country. Another trend is the increasing demand for cloud-based services, which has led to the growth of Uruguay's cloud computing industry. As more businesses move their operations to the cloud, the demand for cloud-based services is expected to continue to grow in Uruguay.

Local special circumstances: Uruguay's small size and population have created a unique business environment. The country has a highly educated workforce, but the market is relatively small. This has led to a focus on niche industries, such as IT outsourcing, to support the economy. Additionally, Uruguay has a strong culture of entrepreneurship, which has led to the growth of small and medium-sized businesses in the IT sector.

Underlying macroeconomic factors: Uruguay's stable political environment and strong economy have contributed to the growth of its IT Outsourcing market. The country has a highly educated workforce and a strong focus on technology, which has made it an attractive location for businesses seeking outsourcing services. Additionally, the country's proximity to North America and cultural similarities have made it an ideal location for nearshore outsourcing. As long as Uruguay continues to invest in its technology infrastructure and education system, its IT Outsourcing market is expected to continue to grow.

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.