Application Outsourcing - CIS | Statista Market Forecast

Revenue in the Application Outsourcing market is projected to reach US$1.01bn in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of -0.29%, resulting in a market volume of US$996.90m by 2029.
The average Spend per Employee in the Application Outsourcing market is projected to reach US$8.74 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.

For more information on the data displayed, use the info button right next to the boxes.

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 Application Outsourcing market in CIS has been experiencing significant growth in recent years, driven by a number of factors including customer preferences, local special circumstances, and underlying macroeconomic factors.

Customer preferences: One of the main drivers of the Application Outsourcing market in CIS is customer preferences. Many businesses in the region are looking for cost-effective solutions to their IT needs, and outsourcing has emerged as an attractive option. Additionally, many companies are now looking for more specialized services, such as app development and maintenance, which can be difficult to find in-house.

Trends in the market: One trend that has emerged in the Application Outsourcing market in CIS is the increasing demand for customized solutions. As more businesses look to outsource their IT needs, they are also looking for providers who can offer tailored solutions that meet their specific requirements. Additionally, there is a growing trend towards cloud-based services, as companies look to take advantage of the scalability and flexibility that these solutions offer.

Local special circumstances: Another factor driving the growth of the Application Outsourcing market in CIS is local special circumstances. Many countries in the region have a large pool of highly skilled IT professionals, which has helped to attract outsourcing providers from around the world. Additionally, many governments in the region have implemented policies to support the development of the IT sector, which has helped to create a favorable business environment for outsourcing providers.

Underlying macroeconomic factors: Finally, the growth of the Application Outsourcing market in CIS is also being driven by underlying macroeconomic factors. The region has experienced strong economic growth in recent years, which has led to an increase in demand for IT services. Additionally, the region's proximity to Europe and Asia has made it an attractive location for outsourcing providers looking to expand their global footprint.Overall, the Application Outsourcing market in CIS is expected to continue to grow in the coming years, driven by a range of factors including customer preferences, local special circumstances, and underlying macroeconomic factors. As the market evolves, providers will need to continue to innovate and adapt to meet the changing needs of their customers.

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.