IT Services - Ireland

Ireland

Revenue in the IT Services market is projected to reach US$3.90bn in 2024.
IT Outsourcing dominates the market with a projected market volume of US$1.49bn in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2028) of 7.51%, resulting in a market volume of US$5.21bn by 2028.
The average Spend per Employee in the IT Services market is projected to reach US$1,572.00 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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Region

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Currency

Analyst Opinion

The IT Services market in Ireland has seen significant growth in recent years, driven by various factors such as increased investment in technology, digital transformation initiatives, and the rise of cloud computing.

Customer preferences: Customers in Ireland are increasingly looking for IT services that can help them improve their operational efficiency, reduce costs, and enhance their overall business performance. In addition, there is a growing demand for services that can help businesses manage and secure their data, as well as support their digital transformation initiatives.

Trends in the market: One of the major trends in the IT Services market in Ireland is the increasing adoption of cloud computing. Many businesses are moving their IT infrastructure to the cloud to reduce costs, improve scalability, and enhance their agility. This has led to a growing demand for cloud-based services such as infrastructure-as-a-service (IaaS), platform-as-a-service (PaaS), and software-as-a-service (SaaS).Another trend in the market is the rise of managed services. Many businesses are outsourcing their IT operations to third-party providers to reduce costs, improve efficiency, and free up internal resources. Managed services providers offer a range of services such as network management, security, and data backup and recovery.

Local special circumstances: Ireland has a highly skilled workforce and a favorable business environment, which has made it an attractive location for many multinational companies. Many of these companies have set up their European headquarters in Ireland, which has led to a growing demand for IT services in the country.In addition, Ireland has a strong technology ecosystem, with many innovative startups and established technology companies operating in the country. This has created a vibrant market for IT services, with many providers offering cutting-edge solutions to meet the needs of businesses in the country.

Underlying macroeconomic factors: The Irish economy has been growing steadily in recent years, driven by strong exports, low unemployment, and a favorable business environment. This has created a strong demand for IT services, as businesses look to leverage technology to improve their competitiveness and drive growth.Furthermore, the Irish government has been investing heavily in technology and innovation, with initiatives such as the National Broadband Plan and the Innovation 2020 strategy. These initiatives have helped to create a supportive environment for the IT Services market in Ireland, with many businesses benefiting from increased access to high-speed internet and funding for research and development.

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.