Application Outsourcing - APAC | Statista Market Forecast

Revenue in the Application Outsourcing market is projected to reach US$27.01bn in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 1.79%, resulting in a market volume of US$29.52bn by 2029.
The average Spend per Employee in the Application Outsourcing market is projected to reach US$13.46 in 2024.
In global comparison, most revenue will be generated United States (US$42.86bn in 2024).

Definition :
Application Outsourcing refers to the market for all IT application services in a software production context, spanning from requirement assessments to concept and design of software applications. Furthermore, it includes the development (production), support, and maintenance of such software products and services by contracted service providers.

Application outsourcing allows organizations to leverage specialized skills, accelerate development timelines, reduce costs, and ensure efficient management of their applications.

Additional Information:

The Application 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 NEC, Accenture, Capgemini, VMware, and Hewlett Packard Enterprise.

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Concept and design of software applications, such as IBM iX (IBM Interactive Experience), Tata Consultancy Services (TCS), and EPAM Systems
Development and maintenance of software products, such as Infosys, Wipro, and HCL Technologies
Requirement assessments, such as ThoughtWorks, Accenture, and Intellectsoft

Administration outsourcing, such as Conduent, Genpact, and ADP (Automatic Data Processing)
Web hosting, such as GoDaddy, Bluehost, and Amazon Web Services
Strategic Technology Planning, such as BCG (Boston Consulting Group), EY (Ernst & Young), and PwC (PricewaterhouseCoopers)
Support or maintenance for business-internal software products

The Application Outsourcing market in APAC has been experiencing significant growth in recent years.

Customer preferences: Customers in APAC have shown a strong preference for outsourcing their application development and maintenance needs. This is primarily driven by the need for cost reduction and access to specialized skills. Many companies in the region have realized that outsourcing their application development and maintenance can help them achieve these objectives.

Trends in the market: One of the key trends in the APAC Application Outsourcing market is the increasing demand for cloud-based solutions. Cloud computing has gained significant popularity in the region, and companies are increasingly looking to outsource their application development and maintenance to cloud service providers. This trend is driven by the benefits of scalability, flexibility, and cost savings that cloud-based solutions offer. Another trend in the market is the growing adoption of Agile and DevOps methodologies. Companies in APAC are increasingly adopting these methodologies to improve the speed and efficiency of their application development and maintenance processes. This has led to an increased demand for outsourcing partners who are experienced in Agile and DevOps practices.

Local special circumstances: One of the key special circumstances in the APAC Application Outsourcing market is the presence of a large number of skilled IT professionals. Countries like India, China, and the Philippines have a large pool of highly skilled IT professionals who are capable of delivering high-quality application development and maintenance services. This has made APAC an attractive destination for companies looking to outsource their application development and maintenance needs.

Underlying macroeconomic factors: The growth of the Application Outsourcing market in APAC can be attributed to several macroeconomic factors. One of the key factors is the rapid economic growth in the region. Countries like India and China have experienced strong economic growth in recent years, which has led to an increase in the demand for application development and maintenance services. Another macroeconomic factor is the increasing digitalization of businesses in APAC. Companies in the region are increasingly adopting digital technologies to improve their operational efficiency and customer experience. This has led to an increased demand for application development and maintenance services. In conclusion, the Application Outsourcing market in APAC is experiencing significant growth due to customer preferences for cost reduction and access to specialized skills. The market is also being driven by the increasing demand for cloud-based solutions and the adoption of Agile and DevOps methodologies. The presence of a large pool of skilled IT professionals in the region and the rapid economic growth and digitalization of businesses are also contributing to the growth of the market.

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.