Application Outsourcing - Portugal

Revenue in the Application Outsourcing market is projected to reach US$223.90m in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 0.55%, resulting in a market volume of US$230.20m by 2029.
The average Spend per Employee in the Application Outsourcing market is projected to reach US$40.94 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 Portugal is experiencing significant growth in recent years, driven by various factors such as customer preferences, local special circumstances, and underlying macroeconomic factors.

Customer preferences: One of the main reasons for the growth of the Application Outsourcing market in Portugal is the increasing demand for cost-effective and high-quality IT services. Many companies in Portugal are seeking to reduce their IT costs while maintaining high levels of service quality, which has led to a rise in demand for outsourcing services. Additionally, the growing adoption of cloud-based technologies and the need for specialized IT skills are also driving the demand for Application Outsourcing services in Portugal.

Trends in the market: The Application Outsourcing market in Portugal is witnessing several trends that are shaping its growth. Firstly, there is a trend towards the adoption of agile methodologies, which are more flexible and responsive to changing business needs. Secondly, there is a growing preference for nearshore outsourcing services, as companies seek to work with providers that are in the same time zone and have a similar cultural and business environment. Thirdly, there is an increasing demand for digital transformation services, as companies seek to leverage new technologies such as AI, IoT, and blockchain to drive innovation and improve their business processes.

Local special circumstances: Portugal's location and cultural proximity to Europe and North America make it an attractive destination for Application Outsourcing services. Additionally, the country has a highly skilled and educated workforce, with a large pool of IT talent that is proficient in English and other European languages. Furthermore, the Portuguese government has implemented several policies to support the growth of the IT sector, including tax incentives and funding for research and development.

Underlying macroeconomic factors: Several macroeconomic factors are driving the growth of the Application Outsourcing market in Portugal. Firstly, the country's stable political environment and membership in the European Union make it an attractive destination for foreign investment. Secondly, Portugal's cost competitiveness compared to other European countries is driving the demand for outsourcing services. Finally, the country's strong digital infrastructure, including high-speed internet and fiber-optic networks, is enabling the growth of the IT sector and the Application Outsourcing market.

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.