IT Outsourcing - Russia

Russia

Revenue in the IT Outsourcing market is projected to reach €2.57bn in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 6.55%, resulting in a market volume of €3.53bn by 2029.
The average Spend per Employee in the IT Outsourcing market is projected to reach €34.91 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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Mercado

Región

Comparación de regiones

Moneda

Analyst Opinion

Russia, the largest country in the world, has been developing its IT outsourcing market steadily over the years.

Customer preferences: Russian IT outsourcing market is driven by cost savings, access to a large pool of talented IT professionals, and the ability to provide 24/7 customer support. Russian IT outsourcing companies are known for their expertise in software development, cybersecurity, and cloud computing.

Trends in the market: One of the significant trends in the Russian IT outsourcing market is the shift towards nearshoring. Russian companies are increasingly outsourcing their IT needs to nearby countries like Belarus, Ukraine, and Kazakhstan. This trend is driven by the need to reduce costs and the desire to work with companies that share similar cultural and linguistic backgrounds. Another trend is the growing demand for AI and machine learning services. Russian IT outsourcing companies are investing heavily in these areas to meet the growing demand from customers worldwide.

Local special circumstances: The Russian IT outsourcing market faces several challenges, including a shortage of skilled IT professionals, bureaucratic hurdles, and a lack of government support. The government has taken steps to address these challenges by investing in IT education and providing tax incentives to IT companies. However, more needs to be done to ensure the sustainable growth of the IT outsourcing market in Russia.

Underlying macroeconomic factors: Russia's IT outsourcing market is closely tied to the global economy. The market is affected by factors such as economic growth, political stability, and changes in technology. The COVID-19 pandemic has also had a significant impact on the market, with many companies turning to IT outsourcing to reduce costs and maintain business continuity. Despite these challenges, the Russian IT outsourcing market is expected to continue to grow in the coming years, driven by the country's large pool of talented IT professionals and its reputation for delivering high-quality IT services at a competitive price.

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.