Application Outsourcing - EMEA | Statista Market Forecast

Revenue in the Application Outsourcing market is projected to reach US$42.10bn in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 0.89%, resulting in a market volume of US$44.01bn by 2029.
The average Spend per Employee in the Application Outsourcing market is projected to reach US$40.21 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

The Application Outsourcing market in EMEA is experiencing significant growth and development due to several factors.

Customer preferences: Customers in the EMEA region are increasingly opting for application outsourcing services due to the benefits it offers. Outsourcing allows businesses to focus on their core competencies while leaving the development and maintenance of applications to specialized service providers. This helps in reducing costs, improving efficiency, and accessing a wider pool of expertise. Additionally, outsourcing enables businesses to scale their operations quickly and easily, which is particularly important in a rapidly changing market.

Trends in the market: One of the key trends in the EMEA Application Outsourcing market is the increasing demand for cloud-based solutions. Cloud computing offers numerous advantages such as flexibility, scalability, and cost-effectiveness. As a result, many businesses in the region are adopting cloud-based applications and are seeking outsourcing partners who can provide the necessary expertise in this area. Another trend in the market is the growing popularity of mobile applications. With the proliferation of smartphones and tablets, businesses are recognizing the need to have a strong mobile presence. This has led to an increased demand for mobile application development and maintenance services. As a result, outsourcing providers in the EMEA region are expanding their capabilities in mobile application development to cater to this demand.

Local special circumstances: The EMEA region is characterized by a diverse set of countries with varying levels of technological infrastructure and expertise. This presents both challenges and opportunities for the Application Outsourcing market. On one hand, countries with well-established IT industries such as the United Kingdom and Germany provide a strong customer base and a skilled workforce. On the other hand, emerging economies in Eastern Europe and Africa offer cost advantages and untapped potential. Outsourcing providers in the region need to navigate these local dynamics to effectively serve their customers.

Underlying macroeconomic factors: The Application Outsourcing market in EMEA is also influenced by macroeconomic factors such as GDP growth, government policies, and industry regulations. Economic growth in the region drives business expansion and increases the demand for outsourcing services. Government policies and regulations related to data protection and privacy also impact the market, as businesses need to ensure compliance when outsourcing their applications. Additionally, geopolitical factors such as Brexit and trade agreements between countries in the region can have implications for the Application Outsourcing market. In conclusion, the Application Outsourcing market in EMEA is witnessing growth and development driven by customer preferences for cost-effective and specialized services. The increasing demand for cloud-based and mobile applications is shaping the market, while the diverse nature of the region presents both challenges and opportunities. Macroeconomic factors such as GDP growth and government policies also play a role in shaping the market dynamics. Overall, the Application Outsourcing market in EMEA is poised for further expansion 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.