IT Services - Cyprus

Cyprus

Revenue in the IT Services market is projected to reach US$174.50m in 2024.
IT Outsourcing dominates the market with a projected market volume of US$68.67m in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2028) of 6.88%, resulting in a market volume of US$227.70m by 2028.
The average Spend per Employee in the IT Services market is projected to reach US$270.40 in 2024.
In global comparison, most revenue will be generated in the United States (US$495.30bn 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.

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

Market

Region

Region comparison

Currency

Analyst Opinion

Cyprus, an island country located in the Eastern Mediterranean, has a developing IT Services market which is driven by several factors.

Customer preferences: The customers in Cyprus prefer IT Services that are cost-effective, efficient and reliable. They also prefer services that are user-friendly and easily accessible. Due to the increasing adoption of cloud computing and the internet of things (IoT), customers are looking for IT Services that can integrate these technologies to provide a seamless experience.

Trends in the market: The IT Services market in Cyprus is witnessing a shift towards digital transformation. Companies are investing in digital technologies such as cloud computing, big data analytics, and artificial intelligence (AI) to improve their operations and enhance customer experience. The demand for cybersecurity services is also increasing due to the rise in cyber threats. Additionally, the COVID-19 pandemic has accelerated the adoption of remote working and e-commerce, leading to an increased demand for IT Services that can support these trends.

Local special circumstances: Cyprus has a small but growing IT Services industry. The country has a highly educated workforce, with a large percentage of the population having tertiary education. The government is also supportive of the IT Services industry, providing tax incentives and subsidies to attract foreign investment. However, the country's small size and limited market can pose challenges for companies looking to scale up their operations.

Underlying macroeconomic factors: The IT Services market in Cyprus is influenced by several macroeconomic factors. The country has a stable political environment and is a member of the European Union, providing access to a large market. The country's location also makes it a gateway between Europe, Asia, and Africa, providing opportunities for companies to expand their operations. However, the country's economy is heavily dependent on tourism and real estate, which can be volatile. The country also faces challenges such as high levels of public debt and a high unemployment rate.In conclusion, the IT Services market in Cyprus is developing due to the increasing demand for digital transformation, cybersecurity, and remote working solutions. Companies in Cyprus are investing in digital technologies to improve their operations and enhance customer experience. The country's highly educated workforce and government support are also contributing to the growth of the IT Services industry. However, the country's small size and limited market can pose challenges for companies looking to scale up their operations.

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.