Market Insights Technology IT Services IT Outsourcing

Application Outsourcing - Central & Western Europe

Central & Western Europe

Revenue in the Application Outsourcing market is projected to reach US$28.29bn in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 0.97%, resulting in a market volume of US$29.69bn by 2029.
The average Spend per Employee in the Application Outsourcing market is projected to reach US$163.30 in 2024.
In global comparison, most revenue will be generated in the United States (US$42,860.00m in 2024).

Key regions: Brazil, Germany, United Kingdom, Netherlands, China

Market

Region

Region comparison

Currency

Analyst Opinion

The Application Outsourcing market in Central & Western Europe has been experiencing significant growth in recent years.

Customer preferences: Customers in Central & Western Europe are increasingly turning to outsourcing their application development and maintenance needs to third-party service providers. This is due to the increasing complexity of applications, a shortage of skilled IT professionals, and the need for cost-effective solutions. Additionally, customers are placing greater emphasis on quality and reliability of services, as well as the ability to scale quickly and efficiently.

Trends in the market: In Germany, the Application Outsourcing market is being driven by the need for businesses to optimize their IT infrastructure and reduce costs. The market is also being influenced by the growing adoption of cloud-based solutions and the increasing focus on digital transformation.In France, the Application Outsourcing market is being driven by the need for businesses to modernize their legacy systems and improve their overall IT infrastructure. The market is also being influenced by the growing demand for mobile and web-based applications, as well as the increasing focus on cybersecurity.In the United Kingdom, the Application Outsourcing market is being driven by the need for businesses to remain competitive in a rapidly changing marketplace. The market is also being influenced by the growing adoption of cloud-based solutions and the increasing focus on digital transformation.

Local special circumstances: In Central & Western Europe, the Application Outsourcing market is facing a number of challenges. These include a shortage of skilled IT professionals, increasing competition, and the need to comply with strict data privacy regulations. Additionally, businesses are facing pressure to reduce costs while maintaining high levels of service quality.

Underlying macroeconomic factors: The growth of the Application Outsourcing market in Central & Western Europe is being driven by a number of macroeconomic factors. These include the increasing complexity of applications, the need for cost-effective solutions, and the growing demand for mobile and web-based applications. Additionally, the market is being influenced by the increasing focus on digital transformation and the adoption of cloud-based solutions. Overall, the Application Outsourcing market in Central & Western Europe is expected to continue to grow in the coming years, driven by these underlying macroeconomic factors.

Methodology

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.