Application Outsourcing - MENA | Statista Market Forecast

Revenue in the Application Outsourcing market is projected to reach US$2.34bn in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 1.34%, resulting in a market volume of US$2.50bn by 2029.
The average Spend per Employee in the Application Outsourcing market is projected to reach US$11.90 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 MENA has been experiencing significant growth in recent years, driven by customer preferences for cost-effective and efficient software development solutions. With the increasing demand for digital transformation and the need for businesses to stay competitive in the global market, outsourcing application development has become a popular choice for companies in the region.

Customer preferences in the Application Outsourcing market in MENA are largely driven by the need for cost savings and access to specialized expertise. Many businesses in the region are looking to reduce their operational costs and increase efficiency, and outsourcing application development allows them to achieve these goals. By outsourcing their software development needs, companies can benefit from lower labor costs and access to a pool of skilled professionals who can deliver high-quality solutions.

In addition to cost savings, customer preferences in the Application Outsourcing market in MENA are also influenced by the desire for faster time-to-market and access to the latest technologies. Outsourcing application development allows businesses to leverage the expertise of outsourcing providers who are up-to-date with the latest trends and technologies. This enables companies to develop and launch their applications more quickly, giving them a competitive edge in the market.

Trends in the market indicate that businesses in MENA are increasingly outsourcing their application development needs to countries with a strong IT outsourcing industry, such as India and Eastern European countries. These countries have a large pool of skilled IT professionals and offer cost-effective solutions, making them attractive outsourcing destinations for businesses in the region. Local special circumstances in the Application Outsourcing market in MENA include the presence of a young and tech-savvy population, which is driving the demand for digital solutions.

The region has a growing number of startups and small businesses that are looking to leverage technology to grow their businesses. Outsourcing application development allows these companies to access the expertise they need to develop innovative solutions without the need for significant upfront investment. Underlying macroeconomic factors in the Application Outsourcing market in MENA include the region's economic diversification efforts and government support for the IT industry.

Many countries in the region are investing in building a knowledge-based economy and are actively promoting the growth of the IT sector. This creates a favorable environment for outsourcing providers and attracts foreign investment in the market. Overall, the Application Outsourcing market in MENA is developing rapidly due to customer preferences for cost-effective and efficient software development solutions.

With the increasing demand for digital transformation and the need for businesses to stay competitive, outsourcing application development has become a strategic choice for companies in the region. By leveraging the expertise of outsourcing providers, businesses in MENA can achieve their goals of cost savings, faster time-to-market, and access to the latest technologies.

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.