IT Services - Sri Lanka

Sri Lanka

In 2025, the revenue in the IT Services market in Sri Lanka is projected to reach US$852.40m.
IT Outsourcing dominates this market with a projected market volume of US$292.80m in 2025.
Over the period of 2025-2029, a compound annual growth rate (CAGR) of -1.52% is expected, resulting in a market volume of US$801.60m by 2029.
The average spend per employee in the IT Services market is projected to reach US$96.56 in 2025.
In global comparison, United States is expected to generate the most revenue, reaching US$550.30bn in 2025.
Sri Lanka's IT Services market is experiencing a surge in demand driven by the country's skilled workforce and competitive pricing.

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 Sri Lanka has been steadily growing in recent years, driven by a number of factors.

Customer preferences: Customers in Sri Lanka are increasingly looking for IT services that can help them to streamline their businesses and improve their efficiency. This has led to a growing demand for services such as cloud computing, data analytics, and cybersecurity, as well as more traditional IT services such as software development and maintenance.

Trends in the market: One of the key trends in the IT Services market in Sri Lanka is the growing adoption of cloud computing. Many businesses are now looking to move their IT infrastructure and applications to the cloud in order to reduce costs and improve flexibility. Another trend is the increasing use of data analytics to help businesses make better decisions and improve their operations. Finally, there is a growing focus on cybersecurity, as businesses look to protect themselves from the increasing threat of cyber attacks.

Local special circumstances: One of the key factors driving the growth of the IT Services market in Sri Lanka is the country's highly skilled workforce. Sri Lanka has a large pool of talented IT professionals, many of whom have been trained in the UK or US. This means that businesses in Sri Lanka are able to offer high-quality IT services at a competitive price. Additionally, the country has a strong education system, with many universities offering courses in IT and related fields.

Underlying macroeconomic factors: The growth of the IT Services market in Sri Lanka is also being driven by a number of macroeconomic factors. The country has a stable political environment, which has helped to attract foreign investment and create a favorable business climate. Additionally, Sri Lanka has a growing economy, with GDP growth averaging around 6% in recent years. This has led to an increase in demand for IT services from businesses across a range of industries.Overall, the IT Services market in Sri Lanka is expected to continue to grow in the coming years, driven by a combination of customer preferences, local special circumstances, and underlying macroeconomic factors. As businesses in Sri Lanka continue to look for ways to improve their operations and stay competitive, the demand for high-quality IT services is likely to remain strong.

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.