Market Insights Technology IT Services IT Outsourcing

Application Outsourcing - Iran

Iran

Revenue in the Application Outsourcing market is projected to reach US$306.60m in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 0.59%, resulting in a market volume of US$315.80m by 2029.
The average Spend per Employee in the Application Outsourcing market is projected to reach US$10.24 in 2024.
In global comparison, most revenue will be generated in the United States (US$42,860.00m in 2024).

Key regions: Brazil, Germany, United Kingdom, Netherlands, China

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Analyst Opinion

The demand for Application Outsourcing services in Iran has been on the rise in recent years.

Customer preferences: Iranian companies are increasingly turning to Application Outsourcing services to cut costs, improve efficiency and access technical expertise. Small and medium-sized enterprises (SMEs) are the main customers of Application Outsourcing services in Iran. They often lack the resources to maintain in-house IT departments and prefer to outsource these functions to specialized service providers.

Trends in the market: The Application Outsourcing market in Iran is expected to continue growing in the coming years. One of the key drivers of this growth is the increasing adoption of cloud computing services. Iranian companies are increasingly turning to cloud-based solutions to reduce costs and improve flexibility. This has led to an increase in demand for Application Outsourcing services that support cloud-based environments.Another trend in the Iranian Application Outsourcing market is the increasing focus on digital transformation. Companies are looking to modernize their IT systems and processes to better compete in the global marketplace. This has led to an increase in demand for Application Outsourcing services that can help companies develop and implement digital strategies.

Local special circumstances: One of the unique characteristics of the Iranian market is the dominance of state-owned companies in certain sectors. These companies often have complex IT systems that require specialized expertise to manage. As a result, there is a significant demand for Application Outsourcing services that can help these companies maintain and upgrade their IT systems.Another factor that is driving the growth of the Application Outsourcing market in Iran is the increasing availability of skilled IT professionals. Iran has a large pool of talented IT professionals who are well-educated and experienced. This has made it easier for companies to find qualified service providers who can meet their needs.

Underlying macroeconomic factors: The Iranian economy has been growing steadily in recent years, despite the impact of international sanctions. This has created a favorable business environment for Application Outsourcing service providers. The government has also been supportive of the IT sector, investing in infrastructure and providing incentives for companies to invest in the industry.Overall, the Application Outsourcing market in Iran is expected to continue growing in the coming years. The increasing adoption of cloud computing and digital transformation strategies, coupled with the availability of skilled IT professionals and favorable macroeconomic conditions, are all contributing to this growth.

Methodology

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.