According to the International Data Corporation’s (IDC) Worldwide Semiannual Services Tracker, the Malaysian IT services market reached a valuation of US$2.64 billion in 2023, experiencing a 4.1 percent year-over-year (YoY) growth. This represents a slowdown compared to the 5.5 percent growth recorded 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 categorizes the IT services market into three primary segments: Project-Oriented, Managed Services, and Support Services. In 2023, project-oriented services registered the highest growth rate at 4.5 percent, followed by managed services at 4.4 percent, and support services at 2.9 percent.
Looking ahead, the Malaysian IT services market is projected to grow at a compound annual growth rate (CAGR) of 5.9 percent between 2023 and 2028, reaching an estimated value of US$3.51 billion by the end of 2028.
