IT Services - Pakistan

Pakistan

Revenue in the IT Services market is projected to reach US$2.46bn in 2024.
Business Process Outsourcing dominates the market with a projected market volume of US$0.85bn in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 7.31%, resulting in a market volume of US$3.50bn by 2029.
The average Spend per Employee in the IT Services market is projected to reach US$29.73 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.

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Market

Region

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Currency

Analyst Opinion

The IT Services market in Pakistan has been experiencing significant growth in recent years.

Customer preferences: Customers in Pakistan are increasingly relying on technology to carry out their daily activities. This has led to a growing demand for IT services such as software development, cloud computing, and cybersecurity. Pakistani businesses are also increasingly looking to outsource their IT needs to external service providers, which has further boosted the growth of the IT services market.

Trends in the market: One significant trend in the IT services market in Pakistan is the increasing adoption of cloud computing. Many Pakistani businesses are now migrating their IT infrastructure to the cloud, which has led to a growing demand for cloud-based IT services. Another trend is the growing popularity of cybersecurity services. With the increasing number of cyber threats, businesses in Pakistan are now investing more in cybersecurity to protect their data and systems.

Local special circumstances: One unique aspect of the IT services market in Pakistan is the large number of small and medium-sized IT service providers. These providers offer a wide range of services, from software development to digital marketing, and are often more affordable than larger providers. This has made IT services more accessible to small businesses in Pakistan, which has contributed to the growth of the market.

Underlying macroeconomic factors: The growth of the IT services market in Pakistan is being driven by several macroeconomic factors. One of these is the country's large and growing population, which has led to a growing demand for IT services. Additionally, Pakistan's government has been investing in the country's IT infrastructure, which has helped to create a more favorable environment for IT service providers. Finally, the country's relatively low labor costs have made it an attractive destination for outsourcing IT 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.