Administration Outsourcing - ASEAN

Revenue in the Administration Outsourcing market is projected to reach US$1.63bn in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 6.02%, resulting in a market volume of US$2.18bn by 2029.
The average Spend per Employee in the Administration Outsourcing market is projected to reach US$4.70 in 2024.
In global comparison, most revenue will be generated United States (US$27.29bn in 2024).

Definition :
Administration Outsourcing refers to the market for services associated with the external sourcing of typical IT administration tasks such as hardware supply, setup, configuration, maintenance, security, and support. This market contains all services related to the provision of physical IT equipment, whereas the support of company-owned software is not included.

Administration outsourcing allows organizations to optimize their administrative processes, improve efficiency, and focus on core competencies.

Additional Information:

The Administration Outsourcing market comprises revenues, revenue change, average spend per employee, and a list of the key players in the market and their consolidated revenues. Market values represent revenues that are generated by primary vendors either directly or through distribution channels at the manufacturer price level (excluding VAT). Reported market revenues include spending by enterprises (B2B) and governments (B2G). Detailed definitions of each market can be found on the respective page where the market data is displayed. Key players in the market include Hewlett Packard Enterprise, IBM, Accenture, Capgemini, and CGI.

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Hardware supply, such as Cisco Systems, Hewlett Packard Enterprise (HPE), and Dell Technologies
Hardware configuration, such as CDW (CDW Corporation), World Wide Technology (WWT), and ProSys Information Systems
Hardware maintenance, such as IBM Technology Support Services, Innovative Computer Systems, and Maintech
Security and support, such as Rapid7, Check Point Software Technologies, and Trend Micro

Application outsourcing, such as ScienceSoft, Arcanys, and SumatoSoft
Web hosting, such as GoDaddy, Bluehost, and Amazon Web Services
Customer relationship management, such as Salesforce, SAP Customer Experience(C/4HANA), and Microsoft Dynamics 365
Support of core business functions

The Administration Outsourcing market in ASEAN has been experiencing a steady growth in recent years.

Customer preferences: Businesses in ASEAN are increasingly outsourcing administrative tasks to third-party service providers. This is due to the need to reduce costs, improve efficiency, and focus on core business functions. Small and medium-sized enterprises (SMEs) are the main customers of administration outsourcing services in the region.

Trends in the market: The Philippines is the largest market for administration outsourcing in ASEAN. The country's highly skilled workforce, lower labor costs, and proficiency in English make it an ideal destination for outsourcing administrative tasks. Indonesia is also emerging as a key market due to its large population and growing economy. Vietnam is becoming an attractive destination due to its low labor costs and improving infrastructure.

Local special circumstances: The ASEAN region has a diverse set of countries with different languages, cultures, and business practices. This presents a challenge for administration outsourcing service providers who need to tailor their services to meet local requirements. In addition, the region has a high level of competition among service providers, which has led to price pressures.

Underlying macroeconomic factors: The growth of the administration outsourcing market in ASEAN is driven by several macroeconomic factors. The region has a large pool of young and skilled workers who are willing to work for lower wages than their counterparts in developed countries. In addition, the region's governments are implementing policies to attract foreign investment and create a business-friendly environment. The growth of the digital economy is also driving demand for administration outsourcing services as businesses seek to streamline their operations and take advantage of new technologies.

Data coverage:

The data encompasses B2G, B2B, and B2C enterprises. Figures are based on enterprises' technology spending on products, consulting, and outsourcing services.

Modeling approach / Market size:

Market sizes are determined through a combined top-down and bottom-up approach, building on a specific rationale for each market segment. As a basis for evaluating markets, we use annual financial reports of key players in the industry, Statista's primary research and surveys, and IT associations. In addition, we use relevant key market indicators and data from country-specific associations, such as GDP, internet users, and telecommunication. This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, the exponential trend smoothing method is used based on the market data characteristics. The main drivers are the GDP and its sector composition, internet penetration, the level of digitization, and the attitude toward IT security.

Additional notes:

The data is modeled using current exchange rates. The market is updated twice a year in case market dynamics change. The impact of the COVID-19 pandemic and the Russia-Ukraine war is considered at a country-specific level.

This report presents a comprehensive analysis and additional information on the Technology market, in a PDF format.

Unseen yet omnipresent, Information Technology (IT) services are the invisible gears driving modern organizations. These services support business operations and digital transformation through outsourcing, managed services, security, data management, and cloud computing. By leveraging these services, companies enhance efficiency, reduce costs, and gain competitive advantages in a digital marketplace. Prominent cloud providers worldwide include Amazon Web Services, Microsoft Azure, Google Cloud, and Alibaba Cloud. In the managed services sector, Oracle, Accenture, and IBM are among the largest providers globally.