IT Outsourcing - Slovakia

Slovakia

Revenue in the IT Outsourcing market is projected to reach US$543.80m in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 8.68%, resulting in a market volume of US$824.50m by 2029.
The average Spend per Employee in the IT Outsourcing market is projected to reach US$191.40 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 Slovakia has been steadily growing in recent years, with an increasing number of companies turning to outsourcing as a way to reduce costs and increase efficiency.

Customer preferences: One of the main reasons for the growth of the IT Outsourcing market in Slovakia is the country's highly skilled workforce, which is able to provide quality services at a competitive price. Many companies in Western Europe and North America are turning to Slovakia for outsourcing services, as they are able to get high-quality work done at a lower cost than they would in their home countries.

Trends in the market: One of the key trends in the IT Outsourcing market in Slovakia is the increasing focus on cloud-based solutions. Many companies are looking to move their IT infrastructure to the cloud, as it provides greater flexibility and scalability, as well as reducing costs. As a result, there has been a growing demand for cloud-based outsourcing services in Slovakia.Another trend in the market is the growing importance of cybersecurity. With the increasing number of cyber threats facing businesses, there has been a growing demand for outsourcing services that can provide robust cybersecurity solutions. This has led to the development of a number of cybersecurity-focused outsourcing companies in Slovakia.

Local special circumstances: One of the unique features of the IT Outsourcing market in Slovakia is the strong focus on innovation. Many companies in the country are focused on developing new and innovative solutions that can help businesses to improve their operations and increase their competitiveness. This has led to the development of a number of niche outsourcing companies in Slovakia that are focused on providing highly specialized services.

Underlying macroeconomic factors: The growth of the IT Outsourcing market in Slovakia is being driven by a number of macroeconomic factors, including the country's highly skilled workforce, its favorable business environment, and its competitive cost structure. In addition, the country's strategic location in the heart of Europe makes it an attractive location for companies looking to outsource their IT services. As a result, the IT Outsourcing market in Slovakia is expected to continue to grow in the coming years, driven by increasing demand for cloud-based and cybersecurity-focused outsourcing 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.