IT Services - Vietnam

Vietnam

Revenue in the IT Services market is projected to reach US$1.99bn in 2024.
IT Outsourcing dominates the market with a projected market volume of US$0.69bn in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 9.34%, resulting in a market volume of US$3.11bn by 2029.
The average Spend per Employee in the IT Services market is projected to reach US$34.84 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

Region comparison

Currency

Analyst Opinion

Vietnam, a country known for its rich culture and beautiful landscapes, has also been making strides in the IT Services market.

Customer preferences: Vietnamese customers have been increasingly interested in IT services that offer cloud computing, artificial intelligence, and cybersecurity. This is due to the growing digitalization of businesses and the need for more efficient and secure systems. Additionally, there has been a rise in demand for mobile applications and e-commerce platforms as more consumers turn to online shopping.

Trends in the market: The IT Services market in Vietnam has been experiencing rapid growth in recent years. This can be attributed to the government's efforts to promote the development of the IT industry, as well as the country's young and tech-savvy population. Furthermore, the cost of labor in Vietnam is relatively low compared to other countries in the region, making it an attractive destination for outsourcing IT services. One trend that has been observed in the market is the emergence of startups and small and medium-sized enterprises (SMEs) in the IT industry. These companies are leveraging new technologies and innovative business models to disrupt traditional industries and create new opportunities. Another trend is the increasing importance of cybersecurity, as businesses become more reliant on digital systems and face greater risks of cyber attacks.

Local special circumstances: Vietnam has a unique set of circumstances that have contributed to the growth of its IT Services market. The country has a large and young population, with a median age of just 30 years old. This means that there is a large pool of tech-savvy workers who are able to adapt quickly to new technologies. Additionally, Vietnam has a strong education system that produces a large number of graduates in science, technology, engineering, and mathematics (STEM) fields.

Underlying macroeconomic factors: Vietnam's economy has been growing at a steady pace in recent years, with a GDP growth rate of around 6-7% per year. This has led to an increase in disposable income and consumer spending, which in turn has driven demand for IT services. The government has also been investing heavily in infrastructure and technology, with initiatives such as the National Innovation Center and the Digital Transformation Program. These efforts have created a favorable environment for the IT industry to thrive.

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.