IT Services - South Korea

South Korea

The IT Services market in South Korea is expected to see significant growth in the coming years.
By 2024, the projected revenue for this market is an impressive €30.90bn.
Among the various segments in the IT Services market, IT Outsourcing is expected to dominate with a projected market volume of €11.72bn in 2024.
Looking further ahead, the market is expected to maintain a healthy growth rate, with an annual growth rate (CAGR 2024-2029) of 5.46%.
This growth is expected to result in a market volume of €40.31bn by 2029.
An interesting metric to consider is the average Spend per Employee in the IT Services market.
In South Korea, this is projected to reach €1,033.00 in 2024.
This figure provides insight into the investment and expenditure made by companies in the IT Services market sector.
It's worth noting that, in comparison to other countries, United States is expected to generate the most revenue in the IT Services market, with a projected revenue of €479.00bn in 2024.
This highlights the dominance of the US market in the global IT Services market industry.
South Korea's IT Services market is rapidly expanding, driven by the country's strong technological infrastructure and high demand for digital transformation solutions.

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.

For more information on the data displayed, use the info button right next to the boxes.

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Analyst Opinion

South Korea, a country known for its technological advancements, has a thriving IT Services market.

Customer preferences: South Korean customers have a high demand for IT services due to their heavy reliance on technology in their daily lives. The country has a high smartphone penetration rate, and many businesses have shifted to online platforms. Therefore, customers prefer IT services that are efficient, secure, and user-friendly.

Trends in the market: One of the significant trends in the South Korean IT Services market is the growth of cloud computing services. Many businesses are adopting cloud computing to store and manage their data, leading to an increase in demand for cloud-based IT services. Additionally, the market is experiencing a rise in demand for cybersecurity services due to the increasing number of cyber threats. Companies are investing in cybersecurity measures to protect their data and systems from cyber attacks.

Local special circumstances: South Korea's unique business culture plays a significant role in the IT Services market. The country's business culture emphasizes the importance of building long-term relationships with customers, which leads to a focus on providing high-quality services. Additionally, South Korean companies prioritize innovation and technology, which drives the demand for IT services.

Underlying macroeconomic factors: South Korea's economy is heavily reliant on exports, with technology being a significant contributor. The government has been investing in developing the country's technology infrastructure, which has led to the growth of the IT Services market. Additionally, the country's high education levels and skilled workforce have contributed to the development of the IT Services market.

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.