Netherlands IT Services Market - Forecast(2024 - 2030)

The Netherlands IT Services Market is estimated to grow at a CAGR of 3.2% during the forecast period 2024-2030 and reach $16.01 billion by 2030, from around $12.79 billion in 2023. The Dutch IT sector is well-known across the world for its rapid innovation and adoption of new technologies. The market is analysed to grow further owing to the high adoption of the cloud-based services. As stated by Rabobank of Netherlands, In 2020, the ICT sector grew and the outlook is positive. Cloud service providers roles are evolving. Companies must focus on cybersecurity as a result of rising threats such as ransomware. ICT firms confront a number of obstacles in addition to expansion. Smaller businesses that provide infrastructure and other services must now make strategic decisions, and ICT firms must ensure that their recommendations are followed. All these factors are altogether impacting on the IT services growth rate in Netherlands. IT services are the strategic use of external service providers to effectively deliver end-to-end business results that have historically been managed by internal resources of IT-related business processes, application services and infrastructure solutions. As stated by the World Economic Forum’s Global Competitiveness Report 2020, the Netherlands is ranked 4 in the economies best positioned to adapt and recover from the COVID-19 impact. There are significant opportunities for growth for IT services through Digital Workplace, Application development, CRM and so on.

The report: “Netherlands IT Services Market – Forecast (2024-2030, by IndustryARC covers an in-depth analysis of the following segments of the Netherlands IT Services market

By Type: Software development, software testing, software implementation, cloud host enablement, BI systems integration, and others

By Service Delivery Demand: Employment, freelance, project delivery & others

By business function: Finance & accounting, human resources, sales & marketing, supply chain management, manufacturing & others

By Deployment Type: On-premise, Cloud

By Business size: small and medium business, enterprises & government

By End use industry: Banking and Financial institutions, insurance firms, Telecommunications, Automotive, Consumer goods & retail, healthcare, manufacturing & Others

As stated by OECD, The Dutch economy will grow robustly in 2021 at 4.3%, exceeding pre-crisis levels by the end of 2021, and expand by 3.2% in 2022 and 1.8% in 2023. The IT sector in Netherlands has seen a limited impact from the corona crisis. The industry outlook is positive. In 2020, the IT industry was one of the few sectors to grow by 1.2%. In these IT services, Small and medium business dominated the market share with 46% in 2021. As stated by World Economic Forum, 96% of companies stated to accelerate the digitalization of work processes. 88% stated to adopt opportunities to work remotely. This is set to majorly impact on the growth of the IT services market during the forecast period 2022-2027.

Government is the largest end user, industry wise with a market share of 20% as of 2021. The significant efforts by government with regards to good governance, smart cities and citizen management are the major driving factor for the market growth rate. In 2018, The Dutch government has announced the goal of providing all Dutch citizens with access to fast fixed-connection broadband internet of at least 100 megabits per second by 2023. By the same year, the vast majority should be taking advantage of a connection ten times as fast 1 gigabit per second. The government wants the Netherlands to stay a global leader in information and communication technology (ICT), hence has launched its Digital Agenda. With its Digital Agenda, the government is encouraging the further digitalisation of the Dutch economy with major interest in areas such as education, knowledge and innovation, fast and open infrastructure, security and confidence, scope for enterprise and digitalisation of industry, healthcare, energy and mobility.

In 2018, the Dutch government launched the Dutch Digitalization Strategy to accelerate digitalization in sectors like healthcare, mobility energy and agri-food. The key principle of the Dutch Digitization Strategy is to equip everyone in Netherlands with the right and state of the art digital and technological skills to boost innovation in the IT sector. Tax incentives are also offered by the Netherlands government to promote R&D investments in the IT sector. Factors like these are aiding to the growth of the underlying market. In 2019, the Netherlands government launched the Strategic Action Plan for AI. This plan aims to capitalize on the economic opportunities of AI, advance AI knowledge through R&D and human capital, and safeguard the public interest by establishing ethical guidelines in AI. Developments like these are strengthening the position of Netherlands as the IT industry leader in the European region. The Recently updated Technology Pact of 2020 (Technikpact) also aims to improve the connection between education and labor market and reduce the shortage of technical staffs in the IT industry.

The growth in IT industry is attributed to the introduction of digitisation trends promoting SMEs and large enterprises to opt for IT infrastructures, which in turn helps in optimizing business operations. The increasing dependency on cloud services and infrastructure upgrading activities is significantly driving the growth of IT industry in Netherlands. Enterprises across multiple industry verticals are turning to IT services for a variety of reasons, including precise forecasting through business intelligence, which aids in optimizing business operations, reducing waste, and increasing business revenues. Lately, the migration of telecom service providers to cloud platforms has aided the expansion of the IT industry in Netherlands. Telecommunications firms rely on a huge computing infrastructure to run a wide range of applications for service delivery, management, and billing. Telecom operators are enabling cloud technologies by adopting them for their business growth while also providing cloud services to end users. Factors ike these are set to be the key drivers for the growth of the underlying market.

The efficiency of IT services in companies depends on many variables and sometimes varies with the companies. Similarly, each organisation is unique and thus hires specific technology to fulfil the specific business solution. Therefore, due to the lack of standardisation, it is difficult for companies to predict the profitability of IT services in other companies based on the performance factor of the same technology. Mismatched network equipment, software platforms, and configurations which involve a lack of standardisation in IT services, leading to communication difficulties, a lack of scalability as the enterprise expands, and failing compliance standards that leave gaping security holes. Security risks of cloud computing have become the top concern in recent years. The shortage of resources/expertise has been the number one cloud challenge articulated for the longest time. Also the shift towards cloud services from on-premise service is posing grave challenge to the on-premise IT services.

The Netherlands IT Services market is moderately consolidated with key players are adopting strategies such as acquisition, product launches and others with the players and companies prevalent in the market. The top companies present in the market include the below.