IT Outsourcing - Austria

Austria

Revenue in the IT Outsourcing market is projected to reach US$3.07bn in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 7.90%, resulting in a market volume of US$4.49bn by 2029.
The average Spend per Employee in the IT Outsourcing market is projected to reach US$634.10 in 2024.
In global comparison, most revenue will be generated in the United States (US$197.30bn in 2024).

Key regions: Netherlands, United States, Japan, Germany, Italy

Definition:
The IT Outsourcing market refers to the external contracting of IT functions, services, or projects instead of relying on company-owned resources. By outsourcing IT tasks (e.g., to IT suppliers or software developers), enterprises are able to focus on their core functions and save internal resources and costs (e.g., office space, maintenance, and utilities). Thus, outsourcing teams becomes a viable cost resilience strategy in an environment where companies are looking to save money more than ever.

In an IT context, these activities include IT administration, IT application, and web hosting services. Non-IT-related outsourcing services are excluded.

Structure:

IT Outsourcing contains four distinct markets that are based on different services:

Administration Outsourcing refers to the market for services associated with the external sourcing of typical IT administration tasks such as hardware supply, setup, configuration, maintenance, security, and support.
Application Outsourcing refers to the market for all IT application services in a software production context, spanning from requirement assessments to concept and design of software applications.
Web Hosting includes all types of internet hosting services that allow companies or individuals to provide access to their web page via the World Wide Web.
Other IT Outsourcing refers to aggregated revenues of the types of IT outsourcing that are not specifically mentioned in the other IT Outsourcing markets, such as infrastructure outsourcing, network outsourcing, and managed services.

Additional Information:

The IT Outsourcing market comprises revenues, revenue change, average spend per employee, and revenues of the outsourcing types. 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, Accenture, Capgemini, NTT, and Hewlett Packard Enterprise.

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Market

Region

Region comparison

Currency

Analyst Opinion

The IT Outsourcing market in Austria has been growing steadily in recent years, driven by a number of factors.

Customer preferences: Austrian companies are increasingly turning to IT outsourcing as a way to reduce costs and improve efficiency. Many companies are looking to outsource non-core functions, such as IT support and maintenance, so that they can focus on their core business activities. Additionally, outsourcing allows companies to access specialized expertise that they may not have in-house, such as cybersecurity or data analytics.

Trends in the market: One trend that is driving the IT outsourcing market in Austria is the rise of cloud computing. Many companies are moving their IT infrastructure to the cloud, which allows them to reduce costs and improve scalability. This has led to an increase in demand for cloud-based IT outsourcing services, such as cloud hosting and management.Another trend is the increasing use of automation and artificial intelligence (AI) in IT outsourcing. Automation can help to reduce costs and improve efficiency, while AI can provide valuable insights and analysis. As a result, many IT outsourcing providers in Austria are investing in these technologies to stay competitive.

Local special circumstances: One factor that is unique to the Austrian market is the country's strong focus on data protection and privacy. Austrian companies are subject to strict data protection laws, and many are hesitant to outsource IT functions to countries with weaker data protection regulations. As a result, there is a strong preference for IT outsourcing providers that are based in Austria or other EU countries with similar data protection laws.

Underlying macroeconomic factors: The IT outsourcing market in Austria is also influenced by broader macroeconomic factors. The country has a highly skilled workforce and a stable political environment, which makes it an attractive location for IT outsourcing providers. Additionally, Austria has a strong economy and a high level of digitalization, which creates opportunities for IT outsourcing providers to offer innovative solutions to local companies.

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.