European Services Market Forecast, 2023-2028

Description

This IDC Market Forecast provides an analysis of the services market in Central and Eastern Europe (CEE) and Western Europe (WE) in 2023 and forecasts expenditure through 2028. It is based on IDC's Semiannual Services Tracker, which was updated in April 2024. The report contains market size and distribution by 14 foundation markets - 12 IT services markets and two business services markets, including a further split into five business process outsourcing (BPO)-related sub-foundation markets - across CEE and WE countries. It also highlights growth drivers and inhibitors and presents key points for technology suppliers to consider."The European services market remains stable despite a weak macroeconomic environment and geopolitical uncertainty, although it performed behind expectations in 2023. The future of the services market looks dynamic and promising, driven by organizations' appetite for the latest technological advancements in areas such as AI (particularly generative AI) and automation, adoption of cloud services with a growing emphasis on industry-specific cloud platforms, and advanced cybersecurity solutions." - Senior Research Manager Milan Kalal, IDC European Services Group

Product Code: EUR150912324

IDC Market Forecast Figure

Executive Summary

Advice for Technology Suppliers

Help Address Short-Term Priorities
Assist Customers with GenAI Initiatives
Amplify Value for the Customer Through Partner Ecosystem Innovation
Develop Innovative Use Cases to Create Awareness Among Organizations

Market Forecast

Macro Market View
- Primary Markets
  - Project-Oriented Services
  - Managed Services
  - Support Services
- Service Type View
  - Business Services
  - IT Services
Subregion View
- Western Europe
- Central and Eastern Europe

Market Context

Drivers and Inhibitors
- Drivers
  - GenAI and AI
  - Cloud Computing
- Inhibitors
  - Economy
  - Talent Shortage
Significant Market Developments
- GenAI
- Cloud-Native Application Development
Changes from Prior Forecast

Market Definition

Foundation Market Definitions
- Business Consulting
- IT Consulting
- Systems Integration
- Network Consulting
- Network Integration
- Custom Application Development
- Business Process Outsourcing
- Application Management
- Hosted Application Management
- IT Outsourcing
- Network and Endpoint Outsourcing Services
- Hosting Infrastructure Services
- Hardware Deploy and Support
- Software Deploy and Support
- IT Education and Training