Application Outsourcing - Bangladesh

Revenue in the Application Outsourcing market is projected to reach US$150.80m in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 7.46%, resulting in a market volume of US$216.10m by 2029.
The average Spend per Employee in the Application Outsourcing market is projected to reach US$1.93 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

Bangladesh, a country in South Asia, is known for its vibrant culture and booming economy. The country has been making significant progress in the field of technology and has emerged as a hub for outsourcing services. The Application Outsourcing market in Bangladesh has been developing at a steady pace due to various factors.

Customer preferences: Companies in Bangladesh prefer outsourcing their application development needs to third-party vendors due to several reasons. Firstly, outsourcing helps companies to reduce their operational costs, which is a major concern for small and medium-sized enterprises. Secondly, outsourcing provides access to a skilled workforce that is not available locally. Finally, outsourcing allows companies to focus on their core business activities and leave the application development work to the experts.

Trends in the market: The Application Outsourcing market in Bangladesh has been witnessing certain trends in recent years. Firstly, there has been a significant increase in the demand for mobile application development services. With the rise of smartphones and tablets, companies are looking to develop mobile applications to cater to their customers' needs. Secondly, there has been a shift towards cloud-based application development services. Cloud computing offers several benefits, such as scalability, flexibility, and cost-effectiveness, which has led to an increase in its adoption. Finally, there has been a rise in the demand for customized application development services. Companies are looking for tailor-made solutions that meet their specific requirements.

Local special circumstances: Bangladesh has a large pool of talented IT professionals who are well-versed in the latest technologies. The country has a favorable business environment, with the government providing various incentives to promote the IT industry's growth. The cost of living in Bangladesh is lower than in many other countries, which makes it an attractive destination for outsourcing services.

Underlying macroeconomic factors: The Application Outsourcing market in Bangladesh is being driven by several macroeconomic factors. Firstly, the country's GDP has been growing at a steady pace, which has led to an increase in the number of businesses operating in the country. Secondly, the government has been investing heavily in the IT industry, which has led to the development of world-class IT infrastructure in the country. Finally, the country's strategic location makes it an attractive destination for outsourcing services, as it provides easy access to other Asian markets.In conclusion, the Application Outsourcing market in Bangladesh has been developing at a steady pace due to various factors such as customer preferences, local special circumstances, and underlying macroeconomic factors. The market is expected to continue to grow in the coming years, driven by the increasing demand for mobile application development services, cloud-based application development services, and customized application development 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.