IT Services - Malaysia

Malaysia

Revenue in the IT Services market is projected to reach US$5.12bn in 2024.
IT Outsourcing dominates the market with a projected market volume of US$1.96bn in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 7.59%, resulting in a market volume of US$7.38bn by 2029.
The average Spend per Employee in the IT Services market is projected to reach US$282.40 in 2024.
In global comparison, most revenue will be generated in the United States (US$522.00bn in 2024).

Key regions: United States, China, India, Japan, Germany

Definition:
The IT Services market encompasses a wide range of services used by organizations to create, manage, and deliver information, and it includes services that provide assistance with various other business functions. The primary goal of IT services is to ensure that information technology infrastructure, applications, and systems are effectively implemented, operated, and optimized to support an organization's business objectives and requirements. The specific range of services offered may vary depending on the service provider and the client's requirements.

Structure:

IT Services contains four distinct markets that are based on different services:

IT Consulting & Implementation covers advisory services that help businesses evaluate their technology strategies and align them with their business strategies or internal processes.
Business Process Outsourcing (BPO) refers to the transfer of entire business processes or individual activities from a company to a third party and is often IT based. BPO covers a wide variety of business processes, usually either in the back office (e.g., human resources) or in the front office (e.g., customer service in call centers).
IT Outsourcing refers to the external contracting of all IT-related services instead of relying on company-owned resources. In an IT context, these activities include IT administration, IT application, and web hosting services.
The Other IT Services market covers revenues for areas that are not specifically mentioned in the other markets, such as system integration, software installation and support, and IT education and training.

Additional Information:

The IT Services market comprises revenues, revenue change, average spend per employee, and a list of the key players in the market and their consolidated revenues. 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, Cognizant, Hewlett Packard Enterprise, and TCS.

For more information on the data displayed, use the info button right next to the boxes.

Market

Region

Region comparison

Currency

Analyst Opinion

The IT Services market in Malaysia has been experiencing significant growth in recent years, driven by various factors such as customer preferences, market trends, local special circumstances, and underlying macroeconomic factors.

Customer preferences: In Malaysia, customers are increasingly demanding IT services that are tailored to their specific needs. This has led to a rise in demand for customized IT solutions, such as cloud computing, cybersecurity, and big data analytics. Additionally, customers are looking for IT services that are cost-effective and provide high-quality service.

Trends in the market: The IT services market in Malaysia has been experiencing a trend towards digitalization and automation. Companies are adopting digital technologies to improve their efficiency and competitiveness. This has led to a rise in demand for IT services such as artificial intelligence, machine learning, and robotic process automation.Another trend in the market is the rise of e-commerce. With the increasing popularity of online shopping, companies are looking for IT services that can help them build and manage their online presence. This has led to a rise in demand for IT services such as website development, digital marketing, and online payment solutions.

Local special circumstances: One of the unique characteristics of the IT services market in Malaysia is the presence of a large number of small and medium-sized enterprises (SMEs). These companies often have limited resources and expertise in-house, which makes them heavily reliant on IT service providers. As a result, there is a significant demand for IT services that are affordable and can be tailored to the specific needs of SMEs.

Underlying macroeconomic factors: The Malaysian government has been actively promoting the development of the IT services industry through various initiatives and policies. For example, the government has established the Digital Free Trade Zone (DFTZ) to encourage e-commerce and cross-border trade. Additionally, the government has provided tax incentives and grants to companies that invest in the IT services industry.Furthermore, Malaysia's strategic location and well-developed infrastructure have made it an attractive destination for foreign companies looking to outsource their IT services. This has led to a rise in demand for IT services such as software development, application maintenance, and IT consulting.In conclusion, the IT services market in Malaysia is experiencing significant growth due to customer preferences, market trends, local special circumstances, and underlying macroeconomic factors. As the market continues to evolve, companies that can provide customized, cost-effective, and high-quality IT services will be well-positioned to succeed.

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.