IT Services - Southeast Asia

Southeast Asia

The IT Services market in Southeast Asia is expected to generate a revenue of US$30.68bn by 2024.
IT Outsourcing is set to dominate this market segment, with a projected market volume of US$11.35bn in the same year.
Furthermore, the revenue is anticipated to showcase an annual growth rate (CAGR 2024-2029) of 7.30%, leading to a market volume of US$43.63bn by 2029.
Additionally, the average Spend per Employee in the IT Services market is forecasted to reach US$88.32 in 2024.
It is worth noting that United States is expected to generate the highest revenue globally, amounting to US$522.00bn in 2024.
In the Southeast Asian IT services market, Singapore's strong tech infrastructure and skilled workforce make it a leading destination for multinational companies seeking IT services.

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

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Analyst Opinion

The IT Services market in Southeast Asia has been rapidly growing in recent years, with a high demand for digital transformation and the adoption of emerging technologies.

Customer preferences: Customers in Southeast Asia are increasingly seeking digital solutions to enhance their business operations and stay competitive in the market. With a growing number of small and medium-sized enterprises (SMEs) in the region, there is a high demand for cost-effective IT services that can improve efficiency and productivity. Additionally, the rise of e-commerce platforms has led to an increased demand for IT services that can support online transactions and secure payment gateways.

Trends in the market: In Indonesia, the IT services market is expected to grow due to the government's initiatives to develop the digital economy and the increasing adoption of cloud computing. In Malaysia, the market is expected to grow due to the increasing demand for cybersecurity services and the government's focus on developing the digital infrastructure. In the Philippines, the market is expected to grow due to the increasing demand for IT services in the healthcare and financial sectors. In Singapore, the market is expected to grow due to the government's push for digital transformation and the adoption of emerging technologies such as artificial intelligence and blockchain.

Local special circumstances: In Vietnam, the IT services market is expected to grow due to the country's large pool of IT talent and the government's efforts to promote the development of the digital economy. In Thailand, the market is expected to grow due to the increasing demand for IT services in the tourism and hospitality sectors. In Cambodia, the market is expected to grow due to the government's initiatives to develop the country's digital infrastructure and the increasing adoption of mobile devices.

Underlying macroeconomic factors: The growing IT services market in Southeast Asia can be attributed to the region's increasing GDP and the rising middle class. With a growing number of consumers and businesses adopting digital solutions, there is a high demand for IT services that can support this trend. Additionally, the region's young and tech-savvy population is driving the adoption of emerging technologies, leading to a growing demand for IT services that can support these technologies.

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.