Application Outsourcing - Kuwait | Statista Market Forecast

Revenue in the Application Outsourcing market is projected to reach US$54.16m in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of -0.52%, resulting in a market volume of US$52.78m by 2029.
The average Spend per Employee in the Application Outsourcing market is projected to reach US$21.30 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 Kuwait has been steadily growing over the past few years, driven by a number of factors that have created a favorable environment for outsourcing services.

Customer preferences: Kuwaiti businesses have increasingly been turning to outsourcing services to reduce costs and improve efficiency. This is particularly true in the technology sector, where companies are looking to take advantage of the expertise and resources of outsourcing providers to stay competitive in a rapidly evolving market. Additionally, Kuwaiti businesses are looking for outsourcing providers that can offer a range of services, including application development, maintenance, and testing.

Trends in the market: One of the key trends in the Kuwaiti Application Outsourcing market is the growing demand for cloud-based solutions. This is driven by the need for businesses to have access to scalable and flexible solutions that can be easily customized to meet their specific needs. Another trend is the increasing focus on digital transformation, with businesses looking to leverage emerging technologies such as Artificial Intelligence (AI) and the Internet of Things (IoT) to improve their operations and gain a competitive edge.

Local special circumstances: One of the unique challenges facing the Kuwaiti Application Outsourcing market is the country's relatively small size and limited pool of skilled workers. This has led to a reliance on foreign workers to fill critical roles in the outsourcing industry. Additionally, the country's strict labor laws can make it difficult for outsourcing providers to hire and retain the best talent.

Underlying macroeconomic factors: The Kuwaiti economy is heavily reliant on the oil industry, which has been subject to significant volatility in recent years. This has led to a push for economic diversification, with the government investing heavily in sectors such as technology and innovation. This has created a favorable environment for outsourcing providers, as businesses look to take advantage of the country's growing digital infrastructure and skilled workforce. Additionally, the government's focus on improving the country's business environment and reducing bureaucratic barriers has made it easier for outsourcing providers to operate in Kuwait.

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.