1. OUTSOURCING MARKET
1.1 IT Outsourcing
The IT outsourcing market in Luxembourg is assessed to be around
EUR448 million, which represents 30% of the total ICT services in
Luxembourg (worth EUR1.5 billion) and appears to be one of the most
common types of outsourcing activities and continues to increase
every year.
Key market developments in IT outsourcing relate to the
increasing use of cloud computing infrastructures. The Luxembourg
regulatory authority in the financial sector, the CSSF
("Commission de Surveillance du Secteur Financier")
released in 2017 a specific Cloud Circular, Circular 17/654,
regarding IT outsourcing relying on a cloud computing
infrastructure. In light of the release of the revised Guidelines
on outsourcing arrangements by the European Banking Authority
("EBA") in February 2019, the Cloud Circular was updated
by the CSSF in March 2019 with the release of Circular 19/714. The
Guidelines on outsourcing arrangements from the EBA will
