IT Services - Western Asia

Western Asia

Revenue in the IT Services market is projected to reach US$22.81bn in 2024.
IT Outsourcing dominates the market with a projected market volume of US$8.21bn in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 5.64%, resulting in a market volume of US$30.01bn by 2029.
The average Spend per Employee in the IT Services market is projected to reach US$274.70 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

The IT Services market in Western Asia has been experiencing significant growth in recent years.

Customer preferences: Customers in Western Asia have been increasingly demanding IT services that are tailored to their specific needs. This has led to a rise in demand for customized software solutions and IT consulting services. Additionally, customers are placing greater emphasis on cybersecurity and data privacy, which has led to an increase in demand for IT security services.

Trends in the market: One of the major trends in the IT Services market in Western Asia is the adoption of cloud computing. Many businesses in the region are transitioning from traditional on-premises IT infrastructure to cloud-based solutions. This trend is being driven by the many benefits of cloud computing, including increased flexibility, scalability, and cost-effectiveness.Another trend in the market is the rise of artificial intelligence and machine learning. Many businesses in Western Asia are exploring the use of AI and ML to improve their operations and gain a competitive advantage. This trend is being driven by the increasing availability of AI and ML tools and the growing awareness of their potential benefits.

Local special circumstances: One factor that is driving the growth of the IT Services market in Western Asia is the region's large and rapidly growing population. This is creating a significant demand for IT services, particularly in areas such as e-commerce and online banking.Another factor is the region's growing economy. Many countries in Western Asia are experiencing strong economic growth, which is leading to increased investment in IT infrastructure and services.

Underlying macroeconomic factors: The IT Services market in Western Asia is being driven by a number of underlying macroeconomic factors. These include the region's young and growing population, its expanding economy, and its increasing adoption of new technologies. Additionally, the region's strategic location between Europe, Asia, and Africa makes it an attractive destination for businesses looking to expand into new markets.

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.