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Application Outsourcing - Pakistan

Pakistan
  • The projected revenue in the Application Outsourcing market in Pakistan is expected to reach US$163.86m in 2025.
  • This indicates a positive growth trend for the country's outsourcing industry.
  • Furthermore, the market is projected to experience an annual growth rate (CAGR 2025-2029) of 2.82%, resulting in a substantial increase in market volume, reaching US$183.12m by 2029.
  • Additionally, Pakistan's average Spend per Employee in the Application Outsourcing market is estimated to reach US$1.94 in 2025.
  • This metric demonstrates the investment made by companies in the country's outsourcing services.
  • In global comparison, it is noteworthy that United States is expected to generate the highest revenue in the Application Outsourcing market, with an estimated US$43.11bn in 2025.
  • This highlights the dominant position of the United States in the global outsourcing landscape.
  • Pakistan's growing pool of highly skilled IT professionals makes it an attractive destination for companies looking to outsource their application development and maintenance services.

Revenue

Notes: Data was converted from local currencies using average exchange rates of the respective year.

Most recent update: Apr 2024

Source: Statista Market Insights

Notes: The chart “Comparable Estimates” shows the forecasted development of the selected market from different sources. Please see the additional information for methodology and publication date.

Most recent update: Apr 2024

Notes: Data was converted from local currencies using average exchange rates of the respective year.

Most recent update: Apr 2024

Source: Statista Market Insights

Analyst Opinion

The demand for application outsourcing services in Pakistan has been steadily increasing over the past few years, with a growing number of companies opting to outsource their IT needs to third-party vendors.

Customer preferences:
One of the main reasons behind this trend is the desire for cost savings. Outsourcing IT tasks to countries like Pakistan, where labor costs are lower than in many other parts of the world, can help companies reduce their expenses while still receiving quality services. Additionally, many companies find that outsourcing allows them to focus on their core competencies while leaving IT tasks to the experts.

Trends in the market:
Another trend in the Pakistani application outsourcing market is the increasing demand for cloud-based services. As more companies move their operations to the cloud, they require support from third-party vendors to manage their cloud infrastructure and ensure that their applications are running smoothly. This has led to a rise in demand for cloud-based application outsourcing services in Pakistan.

Local special circumstances:
Pakistan has a large pool of IT professionals with expertise in a wide range of technologies, including mobile app development, web development, and software testing. This has made it an attractive destination for companies seeking to outsource their IT needs. Additionally, Pakistan has a favorable business environment and government policies that support the growth of the IT sector.

Underlying macroeconomic factors:
The growth of the application outsourcing market in Pakistan is also being driven by broader macroeconomic factors. The country has a young and growing population, which is increasingly tech-savvy and connected. This has created a large market for IT services, both domestically and internationally. Additionally, Pakistan has made significant investments in its IT infrastructure in recent years, including the development of technology parks and incubators, which have helped to attract foreign investment and stimulate the growth of the IT sector.In conclusion, the application outsourcing market in Pakistan is growing rapidly, driven by a combination of customer preferences, local special circumstances, and underlying macroeconomic factors. As more companies look to reduce costs and focus on their core competencies, the demand for outsourcing services is likely to continue to rise, particularly in areas such as cloud-based services and mobile app development. With its large pool of skilled IT professionals and favorable business environment, Pakistan is well-positioned to capitalize on these trends and become a leading destination for application outsourcing services.

Global Comparison

Notes: Data was converted from local currencies using average exchange rates of the respective year.

Most recent update: Apr 2024

Sources: Statista Market Insights, Financial Statements of Key Players, National statistical offices

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.

Technology

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Key Market Indicators

Notes: Based on data from IMF, World Bank, UN and Eurostat

Most recent update: Jan 2025

Source: Statista Market Insights

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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.
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