IT Services - Nordics

Nordics

In 2024, the projected revenue for the IT Services market in the Nordics is expected to reach US$45.38bn.
This market segment is dominated by IT Outsourcing, with a projected market volume of US$17.51bn in the same year.
Looking ahead, the revenue is anticipated to exhibit an annual growth rate (CAGR 2024-2029) of 5.13%, resulting in a market volume of US$58.29bn by 2029.
When it comes to the average Spend per Employee in the IT Services market, it is projected to reach US$2.98k in 2024.
In comparison to other countries, United States is expected to generate the highest revenue, with an estimated amount of US$522.00bn in 2024.
In the Nordics, the demand for IT services is driven by the region's strong focus on innovation and digitalization.

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 demand for IT services in the Nordics region has been on the rise in recent years, driven by several factors such as the increasing adoption of digital technologies and the need for businesses to remain competitive in the global market.

Customer preferences: Customers in the Nordics region have shown a strong preference for IT services that are innovative, reliable and cost-effective. They are increasingly looking for solutions that can help them improve their operational efficiency, reduce costs, and enhance their customer experience. Cloud-based solutions, cybersecurity, and artificial intelligence are some of the areas where customers are seeking support from IT service providers.

Trends in the market: One of the significant trends in the Nordics IT services market is the growing demand for cloud-based solutions. Many businesses in the region are adopting cloud computing to improve their operational efficiency and reduce costs. Another trend is the increasing demand for cybersecurity services, driven by the rise in cyber threats and the need for businesses to protect their sensitive data. Artificial intelligence is another area where there is growing demand, as businesses seek to leverage the technology to gain insights and improve decision-making.

Local special circumstances: The Nordics region has a highly skilled workforce, with a strong focus on innovation and technology. The region is home to several leading technology companies, and this has created a highly competitive market for IT services. Additionally, the region's strong social welfare system and high standard of living have contributed to a high level of digital literacy among the population, making it easier for businesses to adopt new technologies.

Underlying macroeconomic factors: The Nordics region has a stable economy, with high levels of GDP per capita and low levels of unemployment. The region's strong focus on innovation and technology has helped to drive economic growth, with many businesses in the region investing heavily in research and development. The region's strong social welfare system has also contributed to its economic stability, providing a safety net for citizens and allowing them to focus on innovation and entrepreneurship.

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.