Asia is Facing the Biggest Spending Slowdown
IT Services Spending Enters Six-Year Slowdown, Growth Rate to Halve by 2029
Employee Spending to Soar 26 percent, Yet Growth Momentum to Halve by 2029
For the past five years, companies and organizations worldwide have been spending well over $1 trillion on IT services per year, including IT and business process outsourcing and IT consulting and implementation. But after years of double-digit growth, the market faces a significant slowdown, which will cut the annual spending growth rate in half. According to data presented by Stocklytics.com, the annual growth rate in the IT services sector will continue falling by the end of the decade, reaching 4.5 percent by 2029.
Global spending on IT services is losing momentum in 2025, and this trend isn’t going away any time soon. Economic uncertainty, rising borrowing costs, tight budgets, and ongoing U.S.-China trade tensions are making companies cautious, with many holding back on big tech projects and choosing more affordable solutions instead. According to Statista, the entire market is entering a six-year slowdown, with growth expected to drop by half by 2029.
Back in 2023, global IT services spending jumped to $1.29 trillion, up over 15 percent in a single year. In 2024, spending rose again to $1.42 trillion, but growth slowed to 9.4 percent. According to Statista, this year brings over $1.5 trillion in total spending and an even smaller annual growth rate of 6.4 percent. Although global spending on IT services is expected to hit $1.7 trillion by 2027, the growth rate will drop to 5.5 percent. By 2029, the growth rate will fall even further to 4.9 percent, with total spending hitting $1.87 trillion.
Interestingly, even as overall IT services spending slows, average spending per employee is set to rise by 26 percent, from $420 in 2025 to $505 by 2029. This suggests that while companies are becoming more cautious with their overall IT budgets, they’re still investing more heavily in individual productivity. In other words, businesses will pay more per employee, but overall growth in IT spending will decelerate, reflecting a shift toward efficiency over scale.
Although IT spending is slowing down worldwide, some regions feel it more than others. The U.S. is still the world`s biggest spender, with companies expected to pay around $3,100 per employee in 2025. This figure will rise to nearly $3,800 by 2029, but the annual growth rate will slow from 5.4 percent to 4.6 percent.
Europe will see an even more significant slowdown. Growth is expected to drop from 6.6 percent to 4.2 percent over the next five years, mainly due to strict regulations and higher costs. Still, European companies will spend about $1,380 per employee by 2029, around $250 more than now.
However, Asia is facing the sharpest slowdown. According to Statista, companies in the region are set to spend $152 per employee in 2025, with 7.8 percent annual market growth. Although spending will rise to $190 in the next four years, the growth rate will drop to just 4.9 percent. (Psychic Ventures: ra)
eingetragen: 26.05.25
Psychic Ventures: Kontakt und Steckbrief
Der Informationsanbieter hat seinen Kontakt leider noch nicht freigeschaltet.