Application Outsourcing - Armenia

Revenue in the Application Outsourcing market is projected to reach US$8.20m in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 3.28%, resulting in a market volume of US$9.64m by 2029.
The average Spend per Employee in the Application Outsourcing market is projected to reach US$5.92 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

Armenia, a small landlocked country in the South Caucasus region, is gradually becoming a hub for IT outsourcing services.

Customer preferences: Armenia's IT industry has been growing rapidly in recent years, and the demand for application outsourcing services has been on the rise. Companies are increasingly looking for cost-effective solutions to manage their IT infrastructure, and outsourcing has emerged as a viable option. Additionally, the country's skilled workforce, proficiency in English, and favorable time zone make it an attractive destination for outsourcing services.

Trends in the market: The application outsourcing market in Armenia is witnessing several trends. Firstly, there is a growing demand for cloud-based solutions, which offer greater flexibility, scalability, and cost-effectiveness. Secondly, there is an increasing focus on automation, which is helping companies reduce costs and improve efficiency. Thirdly, there is a shift towards agile methodologies, which enable faster development, testing, and deployment of applications. Finally, there is a growing trend towards outsourcing non-core activities, such as application maintenance and support, to specialist providers.

Local special circumstances: Armenia's IT industry is supported by several government initiatives, including tax breaks and subsidies for IT companies. The country has a well-established IT education system, with several universities offering IT-related courses. Additionally, the country has a thriving startup ecosystem, which is generating innovative ideas and solutions. These factors have helped create a favorable environment for the growth of the application outsourcing market.

Underlying macroeconomic factors: Armenia's economy is heavily dependent on remittances from Armenians working abroad. However, the country's IT industry has emerged as a key driver of economic growth in recent years. The government has recognized the importance of the IT industry and has taken several steps to support its growth. Additionally, the country's strategic location, at the crossroads of Europe and Asia, makes it an attractive destination for IT outsourcing services. Overall, the application outsourcing market in Armenia is expected to continue its growth trajectory in the coming years.

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.