IT Services - Eastern Europe

Eastern Europe

Revenue in the IT Services market is projected to reach US$17.13bn in 2024.
IT Outsourcing dominates the market with a projected market volume of US$5.95bn in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2028) of 8.44%, resulting in a market volume of US$23.69bn by 2028.
The average Spend per Employee in the IT Services market is projected to reach US$148.40 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.

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Market

Region

Region comparison

Currency

Analyst Opinion

The IT Services market in Eastern Europe has been experiencing significant growth in recent years.

Customer preferences: Customers in Eastern Europe are increasingly looking for IT services that can help them improve their business processes and increase efficiency. As a result, there has been a growing demand for IT consulting, software development, and system integration services. Additionally, there has been a shift towards cloud-based solutions as customers look for more flexible and cost-effective ways to manage their IT infrastructure.

Trends in the market: One major trend in the IT Services market in Eastern Europe is the growth of outsourcing. Many companies in Western Europe and North America are outsourcing their IT services to Eastern Europe due to the region's skilled workforce, lower costs, and favorable business environment. This has led to the development of a thriving IT outsourcing industry in countries such as Poland, Romania, and Ukraine.Another trend in the market is the rise of startups and innovation hubs. Countries such as Estonia and Lithuania have become hubs for startups and technology innovation, with a growing number of companies developing cutting-edge technologies in areas such as cybersecurity, blockchain, and artificial intelligence.

Local special circumstances: The IT Services market in Eastern Europe is characterized by a highly skilled workforce, with many countries in the region having a strong tradition in science and engineering. Additionally, the region benefits from a favorable business environment, with many governments offering tax incentives and other forms of support for the IT industry.

Underlying macroeconomic factors: The growth of the IT Services market in Eastern Europe is being driven by a number of macroeconomic factors, including the region's strong economic growth, growing middle class, and increasing investment in technology infrastructure. Additionally, the region's proximity to Western Europe and its highly skilled workforce make it an attractive destination for companies looking to outsource their IT services.

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.