IT Services - Mongolia

Mongolia

Revenue in the IT Services market is projected to reach US$124.20m in 2024.
Business Process Outsourcing dominates the market with a projected market volume of US$43.40m in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 5.09%, resulting in a market volume of US$159.20m by 2029.
The average Spend per Employee in the IT Services market is projected to reach US$89.13 in 2024.
In global comparison, most revenue will be generated in the United States (US$522.00bn in 2024).

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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Market

Region

Region comparison

Currency

Analyst Opinion

Mongolia, a country in East Asia, has been experiencing a steady growth in its IT services market.

Customer preferences: Mongolian customers have shown a growing interest in adopting new technologies and digital services. This trend has been driven by the increasing use of smartphones and the internet, which has resulted in a demand for IT services such as cloud computing, cybersecurity, and software development. Additionally, the government's efforts to digitize public services have also contributed to the growth of the IT services market.

Trends in the market: One of the major trends in the Mongolian IT services market is the increasing demand for cloud computing services. This trend is driven by the need for businesses to store and manage large amounts of data efficiently. Another trend is the growing demand for cybersecurity services, as businesses and individuals become more aware of the risks associated with cyber threats. Moreover, the software development sector has also been growing, as businesses seek to develop custom software solutions to meet their specific needs.

Local special circumstances: Mongolia's IT services market is still in its early stages of development, with a relatively small number of local IT service providers. As a result, many businesses rely on foreign companies to provide IT services. However, there has been a recent push by the government to promote the development of the local IT sector, with initiatives such as tax breaks and funding for startups.

Underlying macroeconomic factors: Mongolia's economy has been growing steadily in recent years, driven by the mining industry and increased government spending. This growth has resulted in an increase in disposable income and a growing middle class, which has contributed to the demand for IT services. Additionally, the government's efforts to diversify the economy and promote the development of the IT sector have also played a role in the growth of the IT services market. However, the country's small population and remote location pose challenges for the IT services market, as it limits the size of the potential customer base and makes it more difficult to attract foreign investment.

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.