IT Services - Kazakhstan

Kazakhstan

The IT Services market in Kazakhstan is expected to reach a revenue of US$1,333.00m in 2024.
Among the various segments within the market, Business Process Outsourcing is projected to dominate with a market volume of US$443.80m in the same year.
Furthermore, the market is anticipated to exhibit a steady annual growth rate of 6.17% (CAGR 2024-2029), resulting in a market volume of US$1,798.00m by 2029.
When it comes to spending, the average Spend per Employee in the IT Services market is projected to be US$131.40 in 2024.
In a global comparison, United States is expected to generate the highest revenue, reaching US$522.00bn in 2024.
Kazakhstan's IT Services market is rapidly expanding, driven by the government's digital transformation initiatives and increased adoption of cloud computing solutions.

Key regions: United States, China, India, Japan, Germany

Definition:
The IT Services market encompasses a wide range of services used by organizations to create, manage, and deliver information, and it includes services that provide assistance with various other business functions. The primary goal of IT services is to ensure that information technology infrastructure, applications, and systems are effectively implemented, operated, and optimized to support an organization's business objectives and requirements. The specific range of services offered may vary depending on the service provider and the client's requirements.

Structure:

IT Services contains four distinct markets that are based on different services:

IT Consulting & Implementation covers advisory services that help businesses evaluate their technology strategies and align them with their business strategies or internal processes.
Business Process Outsourcing (BPO) refers to the transfer of entire business processes or individual activities from a company to a third party and is often IT based. BPO covers a wide variety of business processes, usually either in the back office (e.g., human resources) or in the front office (e.g., customer service in call centers).
IT Outsourcing refers to the external contracting of all IT-related services instead of relying on company-owned resources. In an IT context, these activities include IT administration, IT application, and web hosting services.
The Other IT Services market covers revenues for areas that are not specifically mentioned in the other markets, such as system integration, software installation and support, and IT education and training.

Additional Information:

The IT Services market comprises revenues, revenue change, average spend per employee, and a list of the key players in the market and their consolidated revenues. 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, Cognizant, Hewlett Packard Enterprise, and TCS.

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Analyst Opinion

The IT Services market in Kazakhstan has been steadily growing over the past few years, driven by increasing demand for digital transformation and adoption of new technologies.

Customer preferences: Kazakhstan's IT Services market is dominated by large multinational companies, which offer a wide range of services, including consulting, system integration, and outsourcing. Customers in Kazakhstan are increasingly looking for innovative solutions that can help them improve their business processes, reduce costs, and enhance their competitiveness. As a result, there is a growing demand for cloud-based services, big data analytics, cybersecurity, and artificial intelligence.

Trends in the market: One of the key trends in the IT Services market in Kazakhstan is the growing adoption of cloud-based services. Companies are increasingly moving their IT infrastructure to the cloud to reduce costs, improve scalability, and enhance their agility. Another trend is the increasing demand for cybersecurity services, as companies seek to protect their data and systems from cyber threats. Additionally, there is a growing interest in artificial intelligence and machine learning, as companies seek to leverage these technologies to improve their operations and gain a competitive advantage.

Local special circumstances: Kazakhstan has a rapidly growing startup ecosystem, which is driving innovation and entrepreneurship in the country. The government has launched several initiatives to support startups, including tax incentives, funding programs, and incubators. This is creating new opportunities for IT Services companies to work with startups and provide them with the technology and expertise they need to succeed.

Underlying macroeconomic factors: Kazakhstan's economy is heavily dependent on the oil and gas industry, which has been hit hard by the global economic downturn. As a result, the government is looking to diversify the economy and promote non-oil sectors, including the IT industry. The government has launched several initiatives to support the development of the IT industry, including tax incentives, funding programs, and infrastructure development. This is creating a favorable environment for IT Services companies to operate and grow in Kazakhstan.

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.