IT Services - Slovakia

Slovakia

In 2024, the projected revenue in the IT Services market in Slovakia is expected to reach US$1,082.00m.
IT Outsourcing is the dominant segment in the market, with a projected market volume of US$543.80m in the same year.
Looking ahead, the revenue is anticipated to display an annual growth rate (CAGR 2024-2029) of 6.35%, resulting in a market volume of US$1,472.00m by 2029.
Furthermore, the average Spend per Employee in the IT Services market is projected to reach US$380.80 in 2024.
In a global comparison, United States is expected to generate the highest revenue, reaching US$522.00bn in 2024.
Slovakia is becoming a hub for IT services, with a growing number of multinational companies establishing their presence in the country.

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 IT Services market in Slovakia has been growing steadily over the past few years, driven by various factors such as customer preferences, local special circumstances, and underlying macroeconomic factors.

Customer preferences: Slovakia has a highly skilled IT workforce, which has been a major factor in the growth of the IT Services market. Customers in Slovakia prefer to work with local IT service providers who understand their business needs and can provide customized solutions. This has led to the emergence of several local IT service providers who have been able to cater to the needs of the local market.

Trends in the market: One of the major trends in the IT Services market in Slovakia has been the increasing demand for cloud-based solutions. With the rise of digital transformation, companies are looking for ways to streamline their operations and improve their efficiency. Cloud-based solutions offer a cost-effective and scalable way to achieve these goals. As a result, many IT service providers in Slovakia have started offering cloud-based services to their customers.Another trend in the market is the increasing demand for cybersecurity services. With the rise of cyber threats, companies are looking for ways to protect their data and systems. This has led to the emergence of several cybersecurity service providers in Slovakia who offer a range of services such as threat detection, incident response, and risk assessment.

Local special circumstances: Slovakia has a highly educated workforce with a strong technical background. This has led to the emergence of several IT service providers who have been able to cater to the needs of the local market. Additionally, Slovakia's location in central Europe makes it an attractive destination for companies looking to outsource their IT services. The country has a stable political environment and a favorable business climate, which has made it an ideal location for IT service providers.

Underlying macroeconomic factors: The IT Services market in Slovakia has been driven by various macroeconomic factors such as the country's GDP growth, unemployment rate, and foreign investment. Slovakia has one of the fastest-growing economies in the European Union, which has led to an increase in demand for IT services. Additionally, the country has a relatively low unemployment rate, which has led to a shortage of skilled IT workers. This has led to an increase in demand for IT service providers who can provide the necessary skills and expertise. Finally, Slovakia has been successful in attracting foreign investment, which has led to the growth 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.