Application Outsourcing - EU-27 | Statista Market Forecast

In 2025, it is projected that the revenue in the Application Outsourcing market in the EU-US$26.41bn will reach a staggering US$26.33bn.
Looking ahead, the market is expected to display a steady annual growth rate (CAGR 2025-2029) of 0.07%, leading to a market volume of US$26.41bn by 2029.
Furthermore, the average Spend per Employee in the EU-US$26.41bn's Application Outsourcing market is estimated to reach US$116.82 in 2025.
This indicates the level of investment and expenditure companies are willing to make in this sector.
When comparing the global market, it is evident that United States is projected to generate the highest revenue in 2025, amounting to an impressive US$43.11bn.
This highlights the dominance of the US in the global Application Outsourcing market.
In EU-27, the IT Services market is witnessing a surge in Application Outsourcing, with companies in Germany leading the way.

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

IT Outsourcing: market data & analysis

The demand for Application Outsourcing services in the EU-27 region has been steadily increasing over the past few years.

Customer preferences: One of the main reasons for this growth is the increasing preference of companies to outsource their non-core activities to third-party service providers. This allows them to focus on their core competencies and reduce costs. Additionally, with the rise of digital transformation, companies are increasingly relying on technology to improve their operations and stay competitive. This has led to an increased demand for application outsourcing services, as companies look to leverage the expertise of service providers to develop and maintain their technology infrastructure.

Trends in the market: The application outsourcing market in the EU-27 region is characterized by a few key trends. Firstly, there is a growing preference for nearshore outsourcing, where companies outsource to service providers in neighboring countries rather than offshore locations. This is driven by factors such as language and cultural similarities, as well as the ability to access a larger pool of skilled resources. Secondly, there is a shift towards outcome-based pricing models, where service providers are paid based on the results they deliver rather than the number of hours worked. This incentivizes service providers to focus on delivering high-quality outcomes rather than simply putting in more hours. Finally, there is an increasing adoption of automation and artificial intelligence (AI) in application outsourcing. This is driven by the need for faster and more efficient development and maintenance of applications, as well as the ability to leverage data insights to drive business outcomes.

Local special circumstances: The application outsourcing market in the EU-27 region is diverse, with each country having its own unique characteristics. For example, countries such as Germany and France have a strong focus on quality and security, which has led to a preference for onshore outsourcing. On the other hand, countries such as Poland and Romania have a large pool of skilled resources and a lower cost of living, making them attractive destinations for nearshore outsourcing. Additionally, countries such as Ireland and the Netherlands have a strong focus on innovation and technology, which has led to the growth of niche service providers specializing in areas such as AI and blockchain.

Underlying macroeconomic factors: The growth of the application outsourcing market in the EU-27 region is also influenced by underlying macroeconomic factors. For example, the region has a highly skilled workforce and a strong tradition of innovation, making it an attractive destination for companies looking to outsource their technology requirements. Additionally, the increasing adoption of cloud computing and digital transformation is driving demand for application outsourcing services. Finally, the ongoing COVID-19 pandemic has accelerated the adoption of remote working and digital technologies, further fueling the growth of the application outsourcing market in the EU-27 region.

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.

Application Outsourcing - EU-27

Revenue

Analyst Opinion

Global Comparison

Methodology

Technology

Access more Market Insights on Technology topics with our featured report

Key Market Indicators

Explore more high-quality data on related topic

IT services - Statistics & Facts

Contact