AN OVERVIEW OF THE GLOBAL IT SERVICES MARKET IN THE DIGITAL ECONOMY

Abstract

This article examines the key trends, structure and prospects for the development of the global IT services market in the context of digital transformation, as well as justifying strategies to enhance the competitiveness of the Ukrainian IT sector. The relevance of this research stems from the acceleration of digital transformation, the impact of geopolitical instability, energy crises and technological competition between nations. IT services (cloud computing, artificial intelligence, Big Data, cybersecurity, software development) have become a key driver of the digital economy, which accounts for 15–22 per cent of global GDP. The aim of this article is to identify the key characteristics, trends and prospects for the development of the global IT services market within the digital economy, and to formulate recommendations for strengthening the position of the Ukrainian IT sector. To achieve this aim, the article analyses market volume trends, influencing factors (digital transformation, geopolitics), the market structure by segment, regional characteristics, and a comparative analysis of the positioning of developed and developing countries. Methods of systemic, structural, comparative, graphical and dynamic analysis were employed. The main findings show the dominance of managed services and outsourcing, rapid growth in cloud services, cybersecurity and AI with analytics. The leading exporters of IT services are the US, the UK and Ireland. Developed countries focus on innovation and high added value, whilst developing countries (including Ukraine) focus on outsourcing and exports. For Ukraine, the IT sector is of strategic importance for foreign exchange earnings, economic resilience and post-war recovery. The report justifies the need to transition from an outsourcing model to the creation of proprietary products with high added value. A set of recommendations has been proposed across 12 areas: improving public policy, developing human capital, stimulating innovation, integrating science, education and business, developing digital infrastructure, strengthening cybersecurity, international integration, diversifying services, attracting investment, regional development, enhancing resilience and harmonising legislation with the EU. Consequently, the strategic development of the Ukrainian IT market must be based on the integration of academia, business and the state, the promotion of innovation, and alignment with European standards. The implementation of the proposed measures will help to enhance the sector’s global competitiveness, increase exports of high-tech services, and strengthen the country’s economic security in the context of digital transformation.