IT Outsourcing - Uzbekistan

Uzbekistan

Revenue in the IT Outsourcing market is projected to reach US$403.70m in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 16.49%, resulting in a market volume of US$866.10m by 2029.
The average Spend per Employee in the IT Outsourcing market is projected to reach US$27.87 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

Uzbekistan, located in Central Asia, is a rapidly developing country with a growing IT Outsourcing market.

Customer preferences: Customers in Uzbekistan are increasingly seeking cost-effective IT solutions without compromising the quality of work. They are looking for service providers that can offer a wide range of IT services, including software development, website development, and mobile application development. Additionally, customers are placing a greater emphasis on data security and privacy.

Trends in the market: The IT Outsourcing market in Uzbekistan is experiencing significant growth due to the country's favorable business environment and low-cost labor. The government of Uzbekistan is actively promoting the development of the IT sector, with a focus on creating a favorable environment for foreign investment. As a result, many foreign companies are establishing their presence in Uzbekistan, leading to an increase in demand for IT outsourcing services. Additionally, the country's young and highly educated workforce is attracting foreign companies looking for skilled IT professionals.

Local special circumstances: One of the factors contributing to the growth of the IT Outsourcing market in Uzbekistan is the country's strategic location. Uzbekistan is located at the crossroads of major transportation routes between Europe and Asia, making it an ideal location for companies looking to expand their presence in the region. Additionally, the country's government is implementing policies to improve the business environment, including tax incentives and simplified procedures for foreign companies looking to invest in Uzbekistan.

Underlying macroeconomic factors: Uzbekistan's economy is growing rapidly, with a focus on diversification and modernization. The government is investing heavily in infrastructure, including the development of high-speed internet networks and the establishment of technology parks. Additionally, the country's young and highly educated workforce is a significant advantage for the IT Outsourcing market. The government is also implementing policies to improve the education system, with a focus on science, technology, engineering, and mathematics (STEM) education. These factors are contributing to the growth of the IT Outsourcing market in Uzbekistan.

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.