IT Outsourcing - Serbia

Serbia

Revenue in the IT Outsourcing market is projected to reach US$131.20m in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 9.31%, resulting in a market volume of US$204.80m by 2029.
The average Spend per Employee in the IT Outsourcing market is projected to reach US$40.40 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 Serbia has been experiencing significant growth in recent years.

Customer preferences: One of the main reasons behind this growth is the increasing demand for cost-effective and high-quality IT services. Many companies are turning to outsourcing as a way to reduce costs while still maintaining a high level of quality. Additionally, Serbia has a highly skilled workforce with a strong background in IT, making it an attractive destination for outsourcing services.

Trends in the market: One trend that has emerged in the IT Outsourcing market in Serbia is the increasing focus on software development and testing services. Many companies are looking to outsource these services to take advantage of Serbia's skilled workforce and lower labor costs. Another trend is the growth of cloud computing, which has led to an increased demand for cloud-based IT services.

Local special circumstances: Serbia has a number of advantages when it comes to IT outsourcing. The country has a highly educated workforce with strong technical skills, and labor costs are lower than in many other European countries. Additionally, Serbia has a favorable business environment, with a number of incentives and tax breaks available to companies that invest in the country.

Underlying macroeconomic factors: Serbia's IT Outsourcing market is also benefiting from broader macroeconomic factors. The country has made significant progress in recent years in terms of economic growth and stability, and this has helped to attract foreign investment. Additionally, Serbia has a strategic location in the heart of Europe, making it an attractive destination for companies looking to expand their operations in the region.Overall, the IT Outsourcing market in Serbia is poised for continued growth in the coming years. With a highly skilled workforce, favorable business environment, and strong macroeconomic fundamentals, the country is well-positioned to attract more outsourcing investment in the years ahead.

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.