Application Outsourcing - Romania

Revenue in the Application Outsourcing market is projected to reach US$96.39m in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 2.33%, resulting in a market volume of US$108.10m by 2029.
The average Spend per Employee in the Application Outsourcing market is projected to reach US$11.73 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

Romania, located in Southeast Europe, is a country that has been rapidly developing its technology sector in recent years. The Application Outsourcing market in Romania has been no exception to this trend, experiencing significant growth and development in recent years.

Customer preferences: Romania's Application Outsourcing market has seen an increase in demand for software development services for companies in Western Europe and the United States. This demand is driven by the country's highly skilled workforce, competitive pricing, and favorable time zone for collaboration with Western companies. Additionally, Romanian companies are known for their expertise in areas such as cloud computing, artificial intelligence, and blockchain technology, which have become increasingly important for businesses around the world.

Trends in the market: One of the key trends in the Romanian Application Outsourcing market is the increasing demand for nearshore outsourcing services. This trend is driven by the country's close proximity to Western Europe, which allows for easier collaboration and communication between Romanian companies and their clients. Additionally, Romanian companies have been investing in new technologies and expanding their capabilities in order to meet the growing demand for more complex software development projects.Another trend in the market is the increasing focus on cybersecurity. As companies around the world become more reliant on technology, the need for strong cybersecurity measures has become increasingly important. Romanian companies have been investing in cybersecurity technologies and expertise in order to meet this growing demand.

Local special circumstances: One of the unique aspects of the Romanian Application Outsourcing market is the country's large pool of highly skilled IT professionals. Romania has a long history of investing in education and training in the technology sector, which has resulted in a highly skilled workforce that is in high demand around the world. Additionally, Romania has a favorable business environment, with low taxes and a relatively low cost of living, which has made it an attractive location for outsourcing services.

Underlying macroeconomic factors: Romania's Application Outsourcing market has been driven by a number of underlying macroeconomic factors. The country's strong economic growth in recent years has led to increased investment in the technology sector, as companies look to take advantage of the country's skilled workforce and favorable business environment. Additionally, Romania's membership in the European Union has made it an attractive location for outsourcing services, as companies can take advantage of the country's favorable trade agreements and access to the European market. Finally, Romania's government has been actively promoting the country's technology sector, investing in education and infrastructure in order to attract more foreign investment and support the growth of the industry.

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.