IT Services

Revenue in the IT Services market is projected to reach US$2.79bn in 2024.
IT Outsourcing dominates the market with a projected market volume of US$1.09bn in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 5.30%, resulting in a market volume of US$3.62bn by 2029.
The average Spend per Employee in the IT Services market is projected to reach US$510.50 in 2024.
In global comparison, most revenue will be generated United States (US$522.00bn in 2024).

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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IT consulting & implementation, such as Accenture, Hitachi, and Hewlett Packard Enterprise
Business process outsourcing, such as IBM, Infosys, and NTT Data
IT outsourcing, such as Capgemini, Cognizant, and Fujitsu
System integration services, such as Deloitte, CGI, and Tata Consultancy Services
IT training & education, such as Skillsoft, LinkedIn Learning, and NIIT

Infrastructure as a service, such as Microsoft Azure, Alibaba Cloud, and DigitalOcean
Platform as a service, such as Microsoft Azura, Google Cloud, and Engine Yard
Software as a service, such as Oracle Cloud Applications, Google Workspace, and Workday
Support or maintenance of company-owned software products

Portugal, a country known for its historic landmarks and beautiful beaches, has been experiencing a steady growth in its IT services market in recent years.

Customer preferences: Customers in Portugal have been increasingly demanding digital solutions and services that can help them streamline their business processes. This has led to a rise in demand for cloud computing, cybersecurity, and software development services. Additionally, there has been a growing interest in emerging technologies such as artificial intelligence and blockchain.

Trends in the market: One of the major trends in the IT services market in Portugal is the shift towards cloud-based solutions. Many businesses are looking to move their operations to the cloud to reduce costs and improve efficiency. Another trend is the increasing importance of cybersecurity, as businesses seek to protect their data from cyber threats. Additionally, there has been a rise in demand for software development services, as businesses look to create custom solutions to meet their specific needs.

Local special circumstances: Portugal's IT services market is heavily influenced by its position within the European Union (EU). The country's membership in the EU has helped to attract foreign investment and fostered a business-friendly environment. Additionally, Portugal's location on the Atlantic coast has made it an attractive destination for international companies looking to expand into Europe and Africa.

Underlying macroeconomic factors: Portugal's IT services market has been buoyed by the country's strong economic growth in recent years. The government has implemented a number of measures to attract foreign investment and support the growth of the technology sector. Additionally, Portugal's membership in the EU has helped to facilitate trade and investment, while the country's skilled workforce has made it an attractive destination for businesses looking to establish a presence in Europe.

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.

This report presents a comprehensive analysis and additional information on the Technology market, in a PDF format.

Unseen yet omnipresent, Information Technology (IT) services are the invisible gears driving modern organizations. These services support business operations and digital transformation through outsourcing, managed services, security, data management, and cloud computing. By leveraging these services, companies enhance efficiency, reduce costs, and gain competitive advantages in a digital marketplace. Prominent cloud providers worldwide include Amazon Web Services, Microsoft Azure, Google Cloud, and Alibaba Cloud. In the managed services sector, Oracle, Accenture, and IBM are among the largest providers globally.