IT Services - Singapore

Singapore

Revenue in the IT Services market is projected to reach US$12.20bn in 2024.
IT Outsourcing dominates the market with a projected market volume of US$4.66bn in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 5.84%, resulting in a market volume of US$16.20bn by 2029.
The average Spend per Employee in the IT Services market is projected to reach US$3.30k 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

Singapore, known as the "Lion City," is a small island nation located in Southeast Asia. Despite its small size, Singapore is a global financial center and a hub for technological innovation. The IT Services market in Singapore has been developing rapidly in recent years, driven by a growing demand for digital transformation and technological advancements.

Customer preferences: Singapore has a highly educated population with a strong interest in technology. The country is home to many multinational corporations and startups, which have a high demand for IT services to support their operations. Additionally, the government of Singapore has been actively promoting digitalization to enhance productivity and competitiveness.

Trends in the market: One of the major trends in the IT Services market in Singapore is the shift towards cloud computing and digitalization. Many businesses are moving away from traditional IT infrastructure to cloud-based solutions, which offer greater flexibility, scalability, and cost savings. Another trend is the growing adoption of artificial intelligence and machine learning, which are being used to improve business processes and customer experiences.

Local special circumstances: Singapore's small size and high population density mean that there is a limited amount of physical space available for data centers and other IT infrastructure. As a result, many businesses are turning to cloud-based solutions to reduce their physical footprint. Additionally, Singapore's strict data protection laws and regulations have created a demand for IT services that can ensure compliance with these regulations.

Underlying macroeconomic factors: Singapore's strong economy and government support for digitalization have created a favorable environment for the growth of the IT Services market. The country's strategic location and well-developed infrastructure have made it an attractive location for multinational corporations and startups. Additionally, Singapore's highly skilled workforce and emphasis on education have created a pool of talent that can support the development of the IT Services market.

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.