IT Services - Montenegro

Montenegro

Revenue in the IT Services market is projected to reach US$44.51m in 2024.
IT Outsourcing dominates the market with a projected market volume of US$17.25m in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 6.74%, resulting in a market volume of US$61.67m by 2029.
The average Spend per Employee in the IT Services market is projected to reach US$152.20 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

Montenegro, a small country located in Southeast Europe, is experiencing growth in its IT Services market. This growth is driven by various factors, including customer preferences, local special circumstances, and underlying macroeconomic factors.

Customer preferences: Montenegro's IT Services market is primarily driven by the demand for software development and IT consulting services. The country's small and medium-sized enterprises (SMEs) are increasingly seeking to improve their operations through the use of technology. Additionally, the government is investing in digitalization and e-government initiatives, which is further driving demand for IT services.

Trends in the market: One of the key trends in Montenegro's IT Services market is the increasing adoption of cloud computing services. SMEs are increasingly turning to cloud-based solutions to reduce costs and improve operational efficiency. Additionally, there is a growing trend towards the use of artificial intelligence and machine learning technologies in various industries, including finance, healthcare, and retail. This is driving demand for IT consulting services, as businesses seek to leverage these technologies to improve their operations.

Local special circumstances: Montenegro's IT Services market is characterized by a relatively small number of players. The market is dominated by a few large players, which limits competition and can lead to higher prices for customers. Additionally, the country's small size and limited pool of skilled IT professionals can make it difficult for businesses to find the talent they need to implement complex IT solutions.

Underlying macroeconomic factors: Montenegro's IT Services market is benefiting from the country's overall economic growth. The country has experienced steady economic growth in recent years, driven by tourism, foreign investment, and government spending. This has created a favorable business environment for IT services providers, as businesses seek to leverage technology to improve their operations and gain a competitive edge. Additionally, Montenegro's favorable tax regime and low labor costs make it an attractive destination for foreign investors looking to establish IT operations in the region.In conclusion, Montenegro's IT Services market is experiencing growth driven by customer preferences, local special circumstances, and underlying macroeconomic factors. The market is characterized by a growing demand for cloud computing and artificial intelligence technologies, as well as a relatively small number of players and a limited pool of skilled IT professionals. However, the country's overall economic growth and favorable business environment make it an attractive destination for IT services providers looking to establish operations in the region.

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.