IT Outsourcing - Turkey

Turkey

Revenue in the IT Outsourcing market is projected to reach US$981.70m in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 9.28%, resulting in a market volume of US$1,530.00m by 2029.
The average Spend per Employee in the IT Outsourcing market is projected to reach US$27.20 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

Turkey, located at the crossroads of Europe and Asia, has become a popular destination for IT outsourcing in recent years.

Customer preferences: Turkish companies are increasingly outsourcing their IT services to reduce costs and improve efficiency. They are looking for reliable and cost-effective solutions that can help them stay competitive in the global market. Many companies are also looking for specialized IT services that can help them meet specific business needs.

Trends in the market: The IT outsourcing market in Turkey is growing rapidly, with many multinational companies setting up operations in the country. The demand for IT services is being driven by the growth of the Turkish economy, which is one of the fastest-growing economies in the region. The government is also investing heavily in the development of IT infrastructure, which is attracting more companies to the country.

Local special circumstances: One of the unique aspects of the IT outsourcing market in Turkey is the availability of a highly skilled workforce. Turkey has a large pool of IT professionals who are well-educated and proficient in English, making them ideal for outsourcing projects. The country also has a strategic location, which allows companies to easily access both European and Asian markets.

Underlying macroeconomic factors: The growth of the Turkish economy is one of the main drivers of the IT outsourcing market in the country. Turkey has a young and growing population, which is driving demand for goods and services. The government has also implemented a number of reforms to make it easier for foreign companies to do business in the country. Additionally, the country's strategic location and access to key markets make it an attractive destination for businesses looking to expand their operations.

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.