Application Outsourcing - China | Statista Market Forecast

Revenue in the Application Outsourcing market is projected to reach US$7.17bn in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 2.24%, resulting in a market volume of US$8.01bn by 2029.
The average Spend per Employee in the Application Outsourcing market is projected to reach US$9.11 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

China's Application Outsourcing market has been experiencing significant growth in recent years, driven by various factors such as customer preferences, local special circumstances, and underlying macroeconomic factors.

Customer preferences: One of the main customer preferences driving the growth of the Application Outsourcing market in China is the increasing demand for digital transformation. As businesses in China continue to adopt digital technologies, they require more IT support and services. Additionally, many companies are looking to outsource their IT functions to reduce costs and improve efficiency. This has led to a rise in demand for Application Outsourcing services, particularly in areas such as software development, maintenance, and testing.

Trends in the market: One of the major trends in the Application Outsourcing market in China is the increasing adoption of cloud-based services. As more companies move their operations to the cloud, they require more support and services to manage their applications. This has led to a rise in demand for cloud-based Application Outsourcing services, particularly in areas such as software-as-a-service (SaaS) and platform-as-a-service (PaaS). Another trend in the market is the increasing use of artificial intelligence (AI) and machine learning (ML) technologies. As more companies in China look to leverage these technologies, they require more support and services from Application Outsourcing providers.

Local special circumstances: One of the local special circumstances driving the growth of the Application Outsourcing market in China is the government's "Made in China 2025" initiative. This initiative aims to transform China into a global manufacturing power by promoting the development of high-tech industries such as IT. As a result, the government has been investing heavily in the IT sector, which has led to a rise in demand for Application Outsourcing services.

Underlying macroeconomic factors: The underlying macroeconomic factors driving the growth of the Application Outsourcing market in China include the country's large and growing economy, its highly skilled workforce, and its favorable business environment. Additionally, China's Belt and Road Initiative has led to an increase in trade and investment between China and other countries, which has created new opportunities for Application Outsourcing providers. Finally, the country's large population and growing middle class have led to an increase in demand for digital services, which has further fueled the growth of the Application Outsourcing market.

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.