Application Outsourcing - ASEAN | Statista Market Forecast

Revenue in the Application Outsourcing market is projected to reach US$2.46bn in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 2.54%, resulting in a market volume of US$2.79bn by 2029.
The average Spend per Employee in the Application Outsourcing market is projected to reach US$7.09 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 demand for Application Outsourcing services in ASEAN has been on the rise in recent years, with several factors contributing to this growth.

Customer preferences: Many companies in ASEAN are increasingly looking to outsource their application development and maintenance activities to third-party service providers. This is primarily driven by the need to reduce costs and improve operational efficiency. Additionally, outsourcing allows companies to access a broader range of technical expertise and resources, which can help them to develop better quality applications and stay ahead of the competition.

Trends in the market: The Application Outsourcing market in ASEAN is characterized by a high degree of competition, with several large global players operating in the region. However, there has been a recent trend towards the emergence of smaller, more specialized service providers that focus on specific niche areas such as mobile application development, cloud-based solutions, and artificial intelligence. These smaller players are able to offer more personalized services and are often more flexible and responsive to customer needs.

Local special circumstances: The Application Outsourcing market in ASEAN is unique in that it is highly fragmented, with each country having its own set of regulations and business practices. As a result, service providers need to be able to navigate these complexities and tailor their offerings to meet the specific needs of each market. Additionally, there is a growing demand for local language support and cultural sensitivity, particularly in countries like Indonesia and Vietnam where English is not widely spoken.

Underlying macroeconomic factors: The Application Outsourcing market in ASEAN is also being driven by broader macroeconomic factors such as the region's rapidly growing middle class, rising levels of urbanization, and increasing adoption of digital technologies. These trends are creating new opportunities for service providers to offer innovative solutions that help companies to better engage with their customers and improve their overall business performance. Additionally, the COVID-19 pandemic has accelerated the shift towards digitalization and remote working, which has further increased the demand for Application Outsourcing services.

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.