The IT services sector in Portugal has experienced substantial growth. From 2013 to 2023, the volume of employment (measured in million hours) rose from 86.6 to 211.13 million, marking an increase of 144.71%. The annual growth was robust, with several peak years such as 2017 and 2021, which saw year-on-year increases of 13.14% and 23.61%, respectively. Notably, 2020 was an outlier with zero growth, likely due to pandemic-related impacts. Over the last five years, the compound annual growth rate (CAGR) was 9.59%.
Looking forward, the forecast predicts continued growth, reaching 296.57 million hours by 2028. The forecasted CAGR for the next five years is 5.36%, predicting a total growth of 29.85%. This implies a more moderate yet consistent increase in employment in the sector.
Key future trends to watch for include the potential impacts of automation and AI, the ongoing digital transformation across industries, and the continuous evolution of cloud computing and cybersecurity services. These factors will likely shape the demand for IT services in Portugal over the coming years.
