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Publication date: 26 Jun 2024

Malaysian IT Services Market Grew to $2.64B in 2023

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IDC expects the IT Services market size in Malaysia to reach US$2.77B in 2024, and US$3.51B by 2028.

KUALA LUMPUR, 26 June 2024 – According to International Data Corporation's (IDC) Worldwide Semiannual Services Tracker, the Malaysian IT Services market was valued at US$ 2.64 billion in 2023 and recorded a 4.1% year-over-year (YoY) growth as compared to 5.5% in 2022.

“The slowdown in economic growth has reduced appetite for large-scale IT investment in the enterprise segment, while conservative spending from the public sector also dampened IT spending in 2023", said Benjamin Ten, Market Analyst, IT Services, IDC Asia/Pacific.

IDC classifies the IT Services market into three primary markets – Project-Oriented, Managed Services, and Support Services. For 2023, project-oriented services registered the highest growth rate at 4.5%, followed by managed services at 4.4% and support services at 2.9%, respectively.

Meanwhile, the Malaysian IT Services market is projected to grow at a CAGR of 5.9% between 2023-2028 and reach US$ 3.51 billion by the end of 2028.

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“The robust level of datacenter investment in Malaysia will be a catalyst for the IT services market, particularly project-oriented and managed services in the long term,” ends Ten.

In addition, the project-oriented market will be driven by the National E-Invoicing Initiative, which will lead to opportunities for PEPPOL-ready service providers to provide systems integration services to both large enterprises and small and medium enterprises (SMEs) in the medium term. Meanwhile, the recently approved Cyber Security Bill 2024 will drive managed services spending within the National Critical Information Infrastructure (NCII) industries.

For media inquiries, please contact Miguel Carreon at mcarreon@idc.com   or Michael de la Cruz at mdelacruz@idc.com.

*All market size and growth percentage numbers are in constant currency.

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About IDC Trackers

IDC Tracker products provide accurate and timely market size, vendor share, and forecasts for hundreds of technology markets from more than 100 countries around the globe. Using proprietary tools and research processes, IDC's Trackers are updated on a semiannual, quarterly, and monthly basis. Tracker results are delivered to clients in user-friendly excel deliverables and online query tools.

About IDC

International Data Corporation (IDC) is the premier global provider of market intelligence, advisory services, and events for the information technology, telecommunications, and consumer technology markets. With more than 1,300 analysts worldwide, IDC offers global, regional, and local expertise on technology and industry opportunities and trends in over 110 countries. IDC's analysis and insight helps IT professionals, business executives, and the investment community to make fact-based technology decisions and to achieve their key business objectives. Founded in 1964, IDC is a wholly-owned subsidiary of International Data Group (IDG), the world's leading tech media, data and marketing services company. To learn more about IDC, please visit www.idc.com. Follow IDC on Twitter at @IDCAP and LinkedIn. Subscribe to the IDC Blog for industry news and insights.



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