IT Outsourcing - Italy

Italy

Revenue in the IT Outsourcing market is projected to reach €9.07bn in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 6.88%, resulting in a market volume of €12.65bn by 2029.
The average Spend per Employee in the IT Outsourcing market is projected to reach €350.10 in 2024.
In global comparison, most revenue will be generated in the United States (€181.10bn 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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Comparación de regiones

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Analyst Opinion

Italy, a country known for its rich culture, history and cuisine, has also been making a name for itself in the IT Outsourcing market.

Customer preferences: Italian companies are increasingly turning towards IT outsourcing as a means of reducing costs and improving efficiency. Small and medium-sized enterprises (SMEs) are the main drivers of this trend, as they seek to compete with larger companies by leveraging the benefits of outsourcing. Additionally, Italian companies are looking for providers who can offer a wide range of services, including software development, cloud computing, and cybersecurity.

Trends in the market: One of the main trends in the Italian IT outsourcing market is the growing demand for nearshoring services. This means that Italian companies are increasingly looking for outsourcing partners located in nearby countries such as Romania, Bulgaria, and Ukraine, rather than outsourcing to more distant locations such as India or China. This trend is driven by a desire to reduce costs while maintaining close proximity to the outsourcing partner, which can lead to better communication and collaboration.Another trend in the market is the increasing adoption of cloud computing services. Italian companies are looking to migrate their IT infrastructure to the cloud in order to reduce costs and improve flexibility. This trend is also driven by the need to stay competitive in an increasingly digital world, as companies look to leverage the latest technologies to improve their operations.

Local special circumstances: One of the unique aspects of the Italian IT outsourcing market is the strong focus on quality and innovation. Italian companies are looking for outsourcing partners who can offer high-quality services and innovative solutions that can help them stay ahead of the competition. This focus on quality and innovation is reflected in the strong reputation that Italian IT outsourcing providers have developed in the market.Another special circumstance is the importance of the Italian language. Italian companies often require outsourcing partners who can provide services in Italian, which can be a challenge for providers based in other countries. Italian outsourcing providers that can offer services in Italian have a competitive advantage in the market.

Underlying macroeconomic factors: The Italian IT outsourcing market is also influenced by broader macroeconomic factors. One of the main drivers of outsourcing in Italy is the high cost of labor. Italian companies are looking for ways to reduce costs, and outsourcing provides an attractive option for achieving this goal. Additionally, the increasing importance of digital technologies in the global economy is driving demand for IT outsourcing services, as companies look to stay competitive in an increasingly digital world. Finally, the ongoing COVID-19 pandemic has accelerated the adoption of digital technologies, which is likely to further fuel demand for IT outsourcing services in Italy and around the world.

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.