IT Outsourcing - Bosnia and Herzegovina

Bosnia and Herzegovina

Revenue in the IT Outsourcing market is projected to reach US$61.56m in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 9.20%, resulting in a market volume of US$95.61m by 2029.
The average Spend per Employee in the IT Outsourcing market is projected to reach US$44.83 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

Bosnia and Herzegovina, a country located in the Balkans, is gradually emerging as a notable player in the IT Outsourcing market.

Customer preferences: Bosnia and Herzegovina's IT Outsourcing market is primarily driven by the demand from European countries such as Germany, Austria, and Switzerland, due to its geographical proximity and cultural similarities. The country is known for its skilled IT professionals who offer high-quality services at a competitive price.

Trends in the market: The IT Outsourcing market in Bosnia and Herzegovina is witnessing a shift towards more complex and specialized services such as cloud computing, big data analytics, and artificial intelligence. This is due to the increasing demand for these services in the global market and the country's efforts to keep up with the latest technological advancements. Additionally, there is a growing trend towards nearshoring, where companies prefer to outsource their IT services to nearby countries rather than far-off destinations such as India or China.

Local special circumstances: Bosnia and Herzegovina has a unique advantage in the IT Outsourcing market due to its multilingual workforce, with proficiency in languages such as English, German, and French. This makes the country an attractive destination for companies that require multilingual support services. Additionally, the government has implemented various policies to promote the growth of the IT sector in the country, such as tax incentives and the establishment of IT parks.

Underlying macroeconomic factors: The IT Outsourcing market in Bosnia and Herzegovina is also influenced by the country's macroeconomic factors, such as its political stability, infrastructure, and education system. The country has made significant progress in improving its infrastructure, with the development of new highways and the expansion of its airports. The education system has also undergone reforms to meet the demands of the IT industry, with the introduction of new IT-related courses in universities and vocational schools. However, the country still faces challenges such as high unemployment rates and a brain drain of skilled professionals leaving the country in search of better opportunities abroad.

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.