Application Outsourcing - Eastern Asia

Revenue in the Application Outsourcing market is projected to reach US$11.72bn in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 0.90%, resulting in a market volume of US$12.26bn by 2029.
The average Spend per Employee in the Application Outsourcing market is projected to reach US$12.83 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 demand for Application Outsourcing services in Eastern Asia has been steadily increasing in recent years.

Customer preferences: One of the main reasons for this growth is the increasing preference for outsourcing non-core activities by businesses in the region. Companies are looking to focus on their core competencies and outsource activities such as software development and maintenance to specialized service providers. Additionally, the availability of skilled and cost-effective labor in countries like China and India has made Eastern Asia an attractive destination for outsourcing.

Trends in the market: China and India are the two largest markets for Application Outsourcing services in Eastern Asia. In China, the market is being driven by the growth of the IT industry and the increasing adoption of digital technologies. The country has a large pool of skilled IT professionals and a favorable business environment, which has attracted many global companies to set up their operations in the country. India, on the other hand, has been a major player in the global outsourcing market for several years. The country has a large pool of English-speaking professionals and a well-established IT industry, which has made it a preferred destination for outsourcing services.

Local special circumstances: Japan is another important market for Application Outsourcing services in Eastern Asia. However, the market in Japan is unique compared to other countries in the region. The country has a mature IT industry, and many companies have already established their own in-house IT departments. Therefore, the demand for outsourcing services in Japan is mainly driven by the need to access specialized skills and expertise that may not be available in-house.

Underlying macroeconomic factors: The growth of the Application Outsourcing market in Eastern Asia can also be attributed to the favorable macroeconomic factors in the region. The region has experienced strong economic growth in recent years, which has led to an increase in the number of businesses and the demand for IT services. Additionally, the region has a large population of young professionals who are highly skilled in IT and are willing to work at competitive rates. These factors have made Eastern Asia an attractive destination for outsourcing services, and the market is expected to continue growing 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.