Application Outsourcing - Cyprus | Statista Market Forecast

Revenue in the Application Outsourcing market is projected to reach US$15.42m in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 1.76%, resulting in a market volume of US$16.82m by 2029.
The average Spend per Employee in the Application Outsourcing market is projected to reach US$22.39 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

Amidst the global trend of outsourcing, Cyprus is also experiencing a rise in the Application Outsourcing market.

Customer preferences: Cyprus has become an attractive location for outsourcing due to its highly skilled workforce, competitive pricing, and strategic location. The country has a large pool of talented IT professionals who are well-versed in various programming languages. Moreover, the cost of outsourcing in Cyprus is lower compared to other countries in the European Union, making it an attractive option for businesses looking to reduce their operational costs. Additionally, the country's strategic location between Europe, Africa, and Asia makes it an ideal location for businesses looking to expand their global reach.

Trends in the market: The Application Outsourcing market in Cyprus is witnessing a significant growth trend. The country's IT sector is expanding rapidly, with more businesses looking to outsource their IT needs to local companies. The rise in demand for outsourcing services has led to the emergence of many new IT companies in the country. These companies offer a wide range of services, including software development, web design, and mobile app development. Moreover, the increasing adoption of cloud computing and big data analytics has also contributed to the growth of the outsourcing market.

Local special circumstances: Cyprus has a unique advantage due to its location and time zone. The country is strategically located to serve as a bridge between Europe and the Middle East, making it an ideal location for businesses looking to expand their operations in these regions. Moreover, the country's time zone is GMT+2, which is the same as most of the Middle East, making it easier for businesses to communicate with their clients in this region.

Underlying macroeconomic factors: The Cypriot economy is recovering from the financial crisis that hit the country in 2013. The government has implemented various measures to stabilize the economy, including tax reforms and incentives for foreign investors. The country's GDP is expected to grow in the coming years, driven by the tourism and services sectors. The growth in the IT sector is also expected to contribute to the country's economic growth. Furthermore, the country's membership in the European Union provides it with access to a large market, which is attractive to businesses looking to expand their operations in Europe. In conclusion, the Application Outsourcing market in Cyprus is experiencing significant growth due to the country's skilled workforce, competitive pricing, and strategic location. The rise in demand for outsourcing services has led to the emergence of many new IT companies in the country. Moreover, the country's unique advantage due to its location and time zone makes it an attractive location for businesses looking to expand their operations in Europe and the Middle East. The Cypriot economy's recovery from the financial crisis and its membership in the European Union also contribute to the growth of the IT sector and the 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.