IT Services

Revenue in the IT Services market is projected to reach US$8.87bn in 2024.
IT Outsourcing dominates the market with a projected market volume of US$3.40bn in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 5.99%, resulting in a market volume of US$11.87bn by 2029.
The average Spend per Employee in the IT Services market is projected to reach US$341.50 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.

For more information on the data displayed, use the info button right next to the boxes.

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

Amidst the growing global IT services market, Taiwan has established itself as a significant player. The country has been making strides in the IT services market, which is evident from the increasing demand for IT services in Taiwan.

Customer preferences: Taiwanese customers have been increasingly relying on IT services to improve their business processes and enhance their operational efficiency. With the rise of e-commerce and digitalization, businesses have been looking for IT services that can help them manage their online presence and increase their customer base. Additionally, Taiwanese businesses have been seeking IT services that can help them with data management, cloud computing, and cybersecurity.

Trends in the market: One of the significant trends in the IT services market in Taiwan is the increasing demand for cloud computing services. Taiwanese businesses have been adopting cloud computing services to manage their data and improve their operational efficiency. Additionally, the rise of e-commerce has led to an increased demand for IT services that can help businesses manage their online presence and improve their customer experience. Another trend in the IT services market in Taiwan is the growing demand for cybersecurity services. With the increasing number of cyber threats, Taiwanese businesses have been looking for IT services that can help them protect their data and systems from cyber attacks.

Local special circumstances: Taiwan has a robust IT infrastructure, which has helped the country establish itself as a significant player in the IT services market. Additionally, Taiwan has a highly skilled workforce, which has been instrumental in the growth of the IT services market. Taiwanese businesses have been able to leverage the expertise of local IT service providers to improve their operational efficiency and enhance their online presence.

Underlying macroeconomic factors: Taiwan's economy has been growing steadily, which has created a favorable environment for the growth of the IT services market. Additionally, the government has been actively promoting the growth of the IT services sector, which has led to increased investment in the sector. Furthermore, Taiwan's strategic location has made it an attractive destination for businesses looking to expand their operations in the Asia-Pacific region.

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.