Application Outsourcing - Finland

Revenue in the Application Outsourcing market is projected to reach US$844.70m in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 0.16%, resulting in a market volume of US$851.40m by 2029.
The average Spend per Employee in the Application Outsourcing market is projected to reach US$293.00 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 Finland has been experiencing steady growth in recent years.

Customer preferences: Finnish companies are increasingly outsourcing their application development and maintenance services to external providers. This is due to the high cost of maintaining an in-house IT team and the growing complexity of software development. Additionally, Finnish companies are looking for providers that can offer a range of services, including cloud computing, mobility, and analytics.

Trends in the market: One of the major trends in the Finnish Application Outsourcing market is the growing adoption of Agile and DevOps methodologies. These methodologies allow companies to develop and deploy applications more quickly and efficiently. Another trend is the increasing use of automation and artificial intelligence, which can help reduce costs and improve the quality of services.

Local special circumstances: Finland has a highly skilled workforce, particularly in the fields of software development and engineering. This has made it an attractive location for outsourcing companies, as they can tap into this talent pool and offer high-quality services to their clients. Additionally, Finland has a strong tradition of innovation and technology, which has helped to create a supportive environment for the development of new technologies and services.

Underlying macroeconomic factors: The Finnish economy has been growing steadily in recent years, with a focus on high-tech industries such as software development and engineering. This has helped to create a favorable environment for outsourcing companies, as they can tap into this growing demand for IT services. Additionally, the Finnish government has been supportive of the technology sector, offering incentives and subsidies to companies that invest in research and development. This has helped to create a vibrant and innovative ecosystem for the development of new technologies and services.

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.