IT Outsourcing - Sweden

Sweden

Revenue in the IT Outsourcing market is projected to reach US$5.87bn in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 8.58%, resulting in a market volume of US$8.86bn by 2029.
The average Spend per Employee in the IT Outsourcing market is projected to reach US$1.02k in 2024.
In global comparison, most revenue will be generated in the United States (US$197.30bn 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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Market

Region

Region comparison

Currency

Analyst Opinion

Sweden, known for its innovation and technological advancements, has been witnessing a steady growth in its IT outsourcing market.

Customer preferences: Swedish companies are increasingly outsourcing their IT services to reduce costs, increase efficiency, and focus on their core competencies. They prefer outsourcing to nearby countries like Estonia, Latvia, and Lithuania due to their geographical proximity, cultural similarities, and lower labor costs.

Trends in the market: The demand for cloud-based services, cybersecurity, and digital transformation solutions has been driving the growth of the IT outsourcing market in Sweden. Companies are also outsourcing their software development and maintenance services to specialized firms, allowing them to access the latest technologies and skilled professionals. Additionally, the COVID-19 pandemic has accelerated the adoption of remote work, leading to an increased demand for IT outsourcing services.

Local special circumstances: Sweden's highly skilled workforce, excellent infrastructure, and favorable business environment have made it an attractive destination for IT outsourcing. The country's government also provides various incentives to foreign companies, such as tax breaks and subsidies, to encourage investment in the country.

Underlying macroeconomic factors: Sweden's stable political environment, high GDP per capita, and low unemployment rate have contributed to the growth of the IT outsourcing market. The country's focus on research and development and its investment in education have also led to a highly skilled workforce, making it an ideal destination for outsourcing services. Furthermore, the country's commitment to sustainable development and green technologies has attracted many foreign companies looking to outsource their IT services.

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.