Application Outsourcing - Central Asia

Revenue in the Application Outsourcing market is projected to reach US$207.00m in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 4.77%, resulting in a market volume of US$261.30m by 2029.
The average Spend per Employee in the Application Outsourcing market is projected to reach US$6.43 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

Central Asia, a region that includes Kazakhstan, Uzbekistan, Turkmenistan, Kyrgyzstan, and Tajikistan, has been experiencing a steady increase in demand for application outsourcing services in recent years.

Customer preferences: One of the main reasons for this trend is the growing preference of companies in Central Asia to outsource their IT services to third-party vendors. This is due to the increasing complexity of technology and the need for specialized skills that are often not available in-house. Additionally, outsourcing allows companies to reduce costs and focus on their core business activities.

Trends in the market: Kazakhstan, the largest economy in Central Asia, has been leading the way in the application outsourcing market. The country has a highly skilled workforce and a favorable business environment, which has attracted many multinational companies to set up their operations in the country. As a result, the demand for application outsourcing services has been steadily increasing, particularly in areas such as software development, testing, and maintenance.Uzbekistan, another major economy in the region, has also been experiencing growth in the application outsourcing market. The country has been implementing a series of economic reforms aimed at attracting foreign investment and promoting entrepreneurship. This has led to an increase in the number of startups and small businesses, many of which rely on outsourcing to access the skills and resources they need to grow.

Local special circumstances: In Turkmenistan, the government has been promoting the development of the country's IT sector, which has led to an increase in demand for application outsourcing services. The country has a young and highly educated population, which has been a key factor in attracting foreign investors to the country's IT industry.Kyrgyzstan and Tajikistan, two of the smaller economies in the region, have also been experiencing growth in the application outsourcing market. These countries have been developing their IT infrastructure and investing in education and training programs to develop their workforce's skills and capabilities.

Underlying macroeconomic factors: The application outsourcing market in Central Asia is also influenced by broader macroeconomic factors, such as geopolitical tensions and global economic trends. For example, the ongoing trade war between the US and China has led many companies to diversify their supply chains and look for alternative outsourcing destinations. Central Asia, with its growing IT industry and favorable business environment, has emerged as an attractive destination for many companies looking to outsource their IT services.In conclusion, the application outsourcing market in Central Asia has been experiencing steady growth in recent years, driven by customer preferences for cost-effective and specialized IT services, as well as local special circumstances such as favorable business environments and skilled workforces. As the region continues to invest in its IT infrastructure and develop its workforce's skills and capabilities, it is likely that the demand for application outsourcing services will continue to grow 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.