Market Insights Technology IT Services IT Outsourcing

Application Outsourcing - New Zealand

New Zealand

Revenue in the Application Outsourcing market is projected to reach US$0.43bn in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 0.91%, resulting in a market volume of US$0.45bn by 2029.
The average Spend per Employee in the Application Outsourcing market is projected to reach US$144.10 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 Application Outsourcing market in New Zealand has been growing steadily in recent years, driven by several factors.

Customer preferences: New Zealand businesses are increasingly looking to outsource their application development and maintenance needs to third-party vendors. This is due to several factors, including the need to reduce costs, increase efficiency, and access specialized expertise. Many businesses in New Zealand are small or medium-sized enterprises (SMEs) that may not have the resources to build and maintain their own in-house IT teams. Outsourcing allows them to access the skills and expertise they need without having to invest in expensive infrastructure or hire additional staff.

Trends in the market: One of the key trends in the Application Outsourcing market in New Zealand is the growing demand for cloud-based solutions. Many businesses are looking to migrate their applications to the cloud to take advantage of the flexibility, scalability, and cost savings that it offers. This has led to a rise in demand for cloud-based application outsourcing services, as businesses seek to partner with vendors that can help them with the migration process and provide ongoing support.Another trend in the market is the increasing focus on digital transformation. Many businesses in New Zealand are looking to modernize their IT systems and processes to stay competitive in the digital age. This has led to a rise in demand for application outsourcing services that can help businesses develop and implement digital solutions such as mobile apps, e-commerce platforms, and data analytics tools.

Local special circumstances: New Zealand is a small market with a relatively small pool of IT talent. This can make it difficult for businesses to find the right skills and expertise they need to develop and maintain their applications in-house. Outsourcing allows them to access a larger pool of talent and expertise from around the world, without having to worry about the logistics of hiring and managing staff from overseas.

Underlying macroeconomic factors: The growth of the Application Outsourcing market in New Zealand is also being driven by broader macroeconomic factors. New Zealand is a small, export-oriented economy that is heavily dependent on international trade. As such, businesses in New Zealand are always looking for ways to reduce costs and increase efficiency in order to remain competitive in the global market. Outsourcing can help them achieve these goals by providing access to cost-effective, high-quality IT services that can help them streamline their operations and improve their bottom line.

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.