IT Outsourcing - France

France

Revenue in the IT Outsourcing market is projected to reach €23.82bn in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 7.78%, resulting in a market volume of €34.65bn by 2029.
The average Spend per Employee in the IT Outsourcing market is projected to reach €741.40 in 2024.
In global comparison, most revenue will be generated in the United States (€183.00bn 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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Analyst Opinion

France, a country known for its rich history, culture, and cuisine, is also a major player in the global IT outsourcing market.

Customer preferences: The French market has a strong preference for IT outsourcing services that are cost-effective, efficient, and reliable. French companies are increasingly looking for providers that can offer a wide range of services, including cloud computing, cybersecurity, and data analytics. Additionally, French companies are placing a greater emphasis on sustainability and environmental responsibility, and are seeking IT outsourcing providers that can help them reduce their carbon footprint.

Trends in the market: One of the major trends in the IT outsourcing market in France is the increasing focus on digital transformation. French companies are looking to modernize their IT infrastructure and systems, and are seeking providers that can help them achieve this goal. Another trend is the growing demand for managed services, as companies look to outsource more of their IT operations to third-party providers. Finally, there is a trend towards greater collaboration between IT outsourcing providers and their clients, with more emphasis being placed on joint innovation and co-creation.

Local special circumstances: France has a highly skilled workforce, particularly in the areas of engineering, science, and technology. This has helped to make the country an attractive location for IT outsourcing providers, who can tap into this talent pool to deliver high-quality services to their clients. Additionally, France has a well-developed infrastructure, including a strong telecommunications network and world-class data centers, which makes it an ideal location for IT outsourcing providers.

Underlying macroeconomic factors: The IT outsourcing market in France is being driven by a number of macroeconomic factors, including the country's strong economic growth, its favorable business environment, and its highly educated workforce. Additionally, the French government has implemented a number of policies aimed at promoting innovation and entrepreneurship, which has helped to create a supportive environment for IT outsourcing providers. Finally, France's membership in the European Union provides IT outsourcing providers with access to a large market of potential clients, as well as a stable regulatory environment.

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.