IT Services - Germany

Germany

Revenue in the IT Services market is projected to reach €68.27bn in 2024.
IT Outsourcing dominates the market with a projected market volume of €28.01bn in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 5.44%, resulting in a market volume of €88.99bn by 2029.
The average Spend per Employee in the IT Services market is projected to reach €1.50k in 2024.
In global comparison, most revenue will be generated in the United States (€484.00bn 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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Comparación de regiones

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Analyst Opinion

Germany, known for its strong economy and technological advancements, has a thriving IT Services market that continues to grow and evolve.

Customer preferences: German businesses have a strong preference for IT services that can improve efficiency, reduce costs, and provide innovative solutions. With a focus on digital transformation, businesses are seeking IT services that can help them adapt to changing market demands and stay ahead of the competition. Additionally, there is an increasing demand for IT security services as cyber threats become more prevalent.

Trends in the market: The IT Services market in Germany is experiencing a shift towards cloud-based solutions. Many businesses are adopting cloud services to improve flexibility and scalability while reducing costs associated with maintaining on-premise infrastructure. Additionally, there is a growing trend towards outsourcing IT services to third-party providers, allowing businesses to focus on their core competencies. Another trend in the market is the increasing adoption of artificial intelligence and machine learning technologies to drive automation and improve business processes.

Local special circumstances: Germany has a highly skilled workforce, with a large number of IT professionals and engineers. This has led to the development of a strong IT Services industry, with many local providers offering high-quality services to businesses across the country. Additionally, Germany has strict data protection laws, which has led to a focus on IT security services and solutions.

Underlying macroeconomic factors: Germany has a strong and stable economy, with a high level of investment in technology and innovation. This has led to a growing demand for IT services as businesses seek to stay competitive and adapt to changing market demands. Additionally, Germany has a large and diverse business landscape, with a mix of small and medium-sized enterprises as well as large corporations. This provides opportunities for IT service providers to offer a range of services to businesses of all sizes.

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.