IT Outsourcing - Switzerland

Switzerland

Revenue in the IT Outsourcing market is projected to reach US$7.19bn in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 8.66%, resulting in a market volume of US$10.89bn by 2029.
The average Spend per Employee in the IT Outsourcing market is projected to reach US$1.41k 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

Switzerland, a country known for its chocolate, cheese, and watches, has also become a hub for IT outsourcing in recent years.

Customer preferences: Swiss companies are increasingly outsourcing their IT services to reduce costs and improve efficiency. They prefer to work with IT outsourcing providers that have a strong track record in delivering high-quality services and have experience working with companies in their specific industry. Swiss companies also value data security and expect their outsourcing partners to have robust security measures in place.

Trends in the market: One of the major trends in the IT outsourcing market in Switzerland is the growing demand for cloud-based services. Many Swiss companies are moving their IT infrastructure to the cloud to take advantage of its flexibility, scalability, and cost savings. Another trend is the increasing adoption of automation and artificial intelligence (AI) in IT outsourcing. Swiss companies are leveraging these technologies to streamline their processes, reduce costs, and improve the quality of their services.

Local special circumstances: Switzerland has a highly skilled workforce and a strong education system that produces a large number of IT professionals. This has led to the development of a thriving IT outsourcing industry in the country. Additionally, Switzerland has a stable political and economic environment, which makes it an attractive destination for outsourcing services.

Underlying macroeconomic factors: Switzerland has a strong economy and is home to many multinational companies. This has created a demand for IT outsourcing services, as companies look to reduce costs and focus on their core competencies. The Swiss government has also been supportive of the IT outsourcing industry, providing tax incentives and other benefits to companies that outsource their IT services to the country. However, the high cost of living in Switzerland means that outsourcing services can be more expensive than in other countries.

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.